The party ousted from government in 2009 after presiding over Iceland’s financial meltdown emerged as the biggest winner in the weekend’s parliamentary elections as talks start to form a ruling coalition.
Iceland still faces a number of hurdles before it can settle a two-year depositor claims dispute with the U.K. and Netherlands as the government and opposition say lawmakers won’t be rushed to approve the bill.
Iceland’s former Prime Minister Geir H. Haarde , who led the island from boom to bust two years ago, became the first political leader to be indicted for mismanagement of economic affairs during the financial crisis.
Iceland’s parliament may block any government attempt to recapitalize the island’s banks after a court ruling threatened to leave some lenders insolvent, opposition party leaders and coalition members said.
Iceland may be weeks away from a depositor accord with the U.K. and Netherlands that Moody’s Investors Service said could boost its credit rating as the island moves a step closer to normalizing its international relations.