How did these guys manage to do this!!! Debt of USD 5.44 Bn with a population of 300 K !!!
Over seas expansion!!!

Iceland battles economic crisis
(02:07) Report
Oct 7 - Iceland takes over its second largest bank and props up its battered currency, the crown, in the face of financial crisis that threatens to overwhelm the economy.
Iceland said it was seeking a 4 billion euro (5.44 billion U.S. dollars) loan from Russia to help it through the financial meltdown and Russia said it viewed the request positively.
The island in the middle of the North Atlantic is home to just 300,000 people, but has found itself on the fault-line of a global financial crisis after a few years of aggressive overseas expansion by its banks and foreign investors have poured money into local projects.