The governments of the UK and the Netherlands have demanded that the Icelandic government cover losses from Icesave savings accounts. Since the total amount of losses may exceed the gross national product of Iceland, it is hard to see how Iceland could meet those demands. The economic rationale for the British and Dutch actions is therefore doubtful.

The ability of Iceland to make good on its obligations is dependent on the strength of its economy. Since international aid, from the International Monetary Fund and other government bodies, appears to be conditional on settlement with the UK and the Netherlands, it is likely that Iceland will be forced to accept those demands, even if the legal issues are unclear. Unfortunately, a settlement along the lines demanded by the creditors would likely lead to a national bankruptcy.