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Dora Sif Tynes

Iceland was hit particularly hard by the global financial crisis in 2008. As a result, the Icelandic authorities enacted a series of measures to combat the effects of the crisis related to the rescue and restructuring of the banking system, resolution and insolvency regimes and fiscal policy. This entailed an unprecedented allocation of State aid, mainly in the banking sector. This chapter provides an overview of the State aid measures in question, as well as the different regulatory measures enacted by the Icelandic authorities.