Bjarni Benediktsson News
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Nobel Laureate Edmund Phelps warned against the dangers of European Union membership as Iceland became the latest nation to question the sense of affiliation with a bloc mired in economic crisis.
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Iceland’s new government will target measures to help households cut their debt loads, including forcing write downs on assets held by the creditors of the island’s failed banks.
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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.
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While Icelanders have a long history of sagas, they’re quick to forgive.
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Iceland’s Social Democrat-led government survived a parliamentary vote of no confidence today, with 32 lawmakers in the 63-member Althingi backing the coalition.
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Four years after letting its commercial banks default on $85 billion, Iceland is preparing to bail out the nation’s biggest mortgage lender and dodge a junk rating from Moody’s Investors Service.
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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.
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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.
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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.
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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.
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