The Icesave Saga
In the 2000s, Iceland experienced an unprecedented financial boom. Banks had been privatised and restrictions on free movement of capital had been lifted in the 1990s under the government of Davíð Oddsson. This liberalisation, which was long overdue, was not least a consequence of the country’s EEA membership on the EFTA side. The two large State banks Landsbanki Íslands and Búnadarbanki Íslands had been sold.