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Credit crunch chill hits Iceland

By Emily Reuben

Updated on 30 September 2008

Iceland loses one bank and there are fears over others, some of which have British savers as customers. Emily Reuben reports

The financial shocks which echoed round the world in the past few days have been particularly strong in Iceland.

The island nation saw the market ratings of its creditworthiness cut, amid fears about the strength of the country's finances.

And the Icelandic economy is closely linked with Britain.

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