- Iceland, G20, and Italy are discussing models for economic growth while grappling with severe population aging challenges.
- Tourism drove economic recovery in Iceland following the severe financial crisis of 2008.
Foreign Creditors Eye Debt Write-Downs Following Glitnir Collapse
What happened
Landsbanki Íslands, Glitnir, and Kaupþing owe foreign investors billions following their 2008 collapse, with default on $85 billion in debt. Incoming government pledges have threatened to force accepted losses on these creditors. Creditors, including the Royal Bank of Scotland and Deutsche Bank, are targets of anti-austerity platforms that promise to write down claims on the failed banks' assets.
From icenews.is
Why it matters
The potential write-down of debt owed by Glitnir and its peers could impact Iceland's international banking reputation. This risk is compounded by existing capital controls and IMF measures, which have already caused the Króna to plummet 40% and made imports expensive for Icelanders.
Tourism drove economic recovery in Iceland following the severe financial crisis of 2008. Iceland, G20, and Italy are discussing models for economic growth while grappling with severe population aging challenges.
From icenews.is
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IcelandSpeculative
Iceland might see its international banking reputation and access to debt markets affected by government pledges to write down debt.
- International Monetary FundSpeculative
The risk of Iceland being locked out of international debt markets could threaten its financial stability.