Iceland

Iceland rises further into investment grade status

by Phillip Inman, The Guardian  |  published on February 18, 2013

Iceland’s rehabilitation after several years as a pariah in the global financial markets gathered pace last night after ratings agency Fitch said the island nation’s debts had moved further into investment grade status.

Fitch said Iceland’s debts had been upgraded to BBB – from the lowest rung of the investment grade category, BBB- – after a strong recovery from the financial crisis.

Reykjavik’s meteoric recovery comes after its 300,000 residents were told they would be locked out of the world’s financial markets for decades after they refused to rescue a group of bankrupt banks in 2008.

Unlike Ireland, Portugal and Spain, the Icelandic government let the country’s banks become insolvent rather than spend tens of billions of pounds on bailout funds.

Ireland, which spent more than €40bn rescuing its banks, recently re-negotiated a series of loans with the EU that will mean its debt payments stretch beyond 2050.

Spain could still be forced to accept an EU bailout after a further deterioration in the financial stability of its major banks, which have only recently revealed the full extent of they bad loans they made in the run up to the banking crisis.

No comments yet - you can be the first!

Comments are closed.

Do you Love your country but hate your government?

Join your fellow Libertarians who seek a world of liberty; a world in which all individuals are sovereign over their own lives and no one is forced to sacrifice his or her values for the benefit of others. Join over 500,000 Americans who get their daily dose of minimal government and maximum freedom with The New Liberty Movement.

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.