ICELAND’S special prosecutor issued indictments yesterday against two former top executives of collapsed Glitnir Bank, claiming they committed fraud by issuing an unauthorised loan of more than €100 million in early 2008.

INSURANCE against Ireland defaulting on its €85.32 billion national debt has soared on fears the cost of rescuing Anglo Irish Bank will rise, indicating the market believes there is a one-in-four chance of a default.

The financial crisis engulfing Iceland showed no sign of easing today.

Blue-chip stocks sunk deeper into the red today as the US Government bank bail-out failed to reassure investors fearful of further woes in the European banking sector.