Among those the island nation is trying to locate is Bjorgolfur Gudmundsson – the billionaire behind West Ham United – as it struggles with economic meltdown.

Yesterday talks between the UK and Iceland on the fate of an estimated £1billion of British deposits trapped in Iceland’s newly-nationalised banks began with relations be­tween the two countries tense.

Iceland has blamed Britain for the collapse of its banking system as its banks had to be nationalised after UK assets of Icelandic banks were frozen.

The banks’ failure trapped the funds of 108 British local authorities as well as charities and London’s police force.

In Washington, the G7 met to thrash out a plan designed to restore stability to the banking system before the markets open again tomorrow.

It is hoped the plan will be enough to stop the markets crashing again this week.

EXPRESS MONEY: EVERYTHING YOU NEED TO BEAT THE CRUNCH