The IMF didn't make loans to lose money. Ideally with such obviously impossible loans to payoff, they should default, but the IMF has loaned them a few billions and soon will come the demands for pound of flesh.
Iceland reminds me of a gambler who keeps going double or nothing like 50 times in a row while losing every time. I am surprised the country hasn't bombed itself yet considering the high suicide rate with these absolute nut case gamblers. The most amazing question of the whole thing is how can 300,000 people over the span of a few years be converted into pyscho maniac gamblers.
Bjork has been declared Queen of Iceland and now owns 94% of the country. The other 6% is owned by the Zimbabwe Govt.