Tuesday, February 21, 2012

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. Full story...

Don't miss:
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  4. Iceland says it was bullied over bank debt by European countries...
  5. Britain and Netherlands to sue Iceland to recover 4billion euros...
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  8. Iceland declares independance from international banks...

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