It is becoming all too clear that Iceland is run by a bunch of incompetents. They fail to regulate their banks, who run up huge unmanagable stock of external liabilities. Their financial system goes into meltdown, while the government makes undeliverable promises guaranteeing the deposits of their effectively bankrupt banks.
Earlier today, incompetence stepped aside and was replaced by comedy. The Icelandic Central Bank annouced that it had secured a $5.4 billion loan from Russia. Later, it turned out that the two countries had "decided to start" negotiations.
Here is an interesting question; what will Russia's terms for such a huge loan to such a sparsely populated country?