There's not a chance the Icelandic government will actually go bankrupt. It would be historic. Sovereign states do go bankrupt once in a while, but I've never heard of one choosing to bankrupt itself in order to partially pay off the bad debt of a corporation.
If Iceland has obligations to some of these companies, they'll likely just default on the debt. The end result would be the same, but perhaps with somewhat less political turmoil.
If Iceland has obligations to some of these companies, they'll likely just default on the debt. The end result would be the same, but perhaps with somewhat less political turmoil.