| Iceland on brink of bankruptcy Component1 #7104 Iceland is close to becoming the first nation state to go bankrupt as a result of the global financial crisis. |
|
+Citations (1)
- CitationsAdd new citationList by: CiterankMapLink[1]
Author: Parmy Olson, Forbes.com
Cited by: David Price 0:10 AM 9 October 2008 GMT
URL: |
| Excerpt / Summary -sovereign-currency-markets-currency-cx_po_1008markets28.html
"Iceland is getting closer to becoming the first nation to go bankrupt as a result of the subprime mortgage crisis and resulting squeeze on lending. Late Wednesday afternoon in Europe, Fitch Ratings said it had cut Iceland's long-term sovereign currency issuer default ratings to "BBB-," from "A," putting them firmly in "junk" territory. Moody's also cut Iceland's sovereign rating to "A1," from "Aa1," and said its ratings were on review, according to TradeTheNews.com.
Meanwhile, Iceland's central bank has abandoned an attempt to peg its currency at 131 kronor to the euro after just two days. The central bank had tried selling the currency at that level on the interbank market for foreign currency, which is how its exchange rate is normally determined, but gave up when no one would buy it. But on Wednesday, the central bank said on its Web site that it had become "clear that there is insufficient support for this exchange rate; therefore, the bank will not make any further such efforts for the time being." |