Iceland Shows Eurozone How To Fight Crisis


Before Greece and Portugal,

it was Iceland that chilled investors.

Now the country’s finances are recovering

and its bonds are turning into a lucrative investment.

­Fitch has upgraded Iceland’s sovereign credit rating from BB+ to BBB- with a stable outlook.

The rating agency lifted “the junk bond status”

saying the country’s “unorthodox crisis policy response has succeeded.”

In 2008

Iceland faced the worst financial crisis in its history

as three leading banks defaulted under the weight of huge foreign debt.

As it became clear the default were inevitable

Iceland’s government nationalized the banks,

while foreign creditors were left holding the bag.

“A Major part of Iceland’s debt has been written off.

That means the country has more chances to pay its debts. So Iceland’s bonds

are more attractive to investors than those of Greece or Portugal”,

commented Tamerlan  Khassimikov, the head of BST Capital Management.


Read the rest here

Next Post

Philip K. Dick ~ The Man In The High Castle

Thu Feb 23 , 2012
It’s America in 1962. Slavery is legal once again. The few Jews who still survive – hide under assumed names. In San Francisco, the I Ching is as common as the Yellow Pages. All because some 20 years earlier the United States lost a war – and it is now […]