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Iceland’s next headache after the repayment vote rejection is possibly to be places on Junk Status

Wednesday, 13 April 2011
The credit rating agency Standard & Poor (S&P) may cut Iceland's credit rating to "junk status".
S & P puts the current credit rating for long-term borrowing in foreign currency at, BBB-, to watch for possible downgrade according to Bloomberg News on Wednesday.
"Guard will continue while we analyze the implications of the vote in terms of economic, financial and political outlook for Iceland, "said Standard & Poor's in a statement.

The Icelandic population voted April 9 against a deal which would have led to a means for credit arrangement to clear the debt owed  Netherlands and Britain  with regard to losses in Icesave accounts ran by Icelandic banks.

Although Iceland is now possibly re-entering a politically turbulent phase, the economic situation seems to look somewhat brighter, at least those of the international lending picture.

Moody's another credit raring agency, threatened to cut Iceland's credit rating dramatically at after the voting, so the credit institution has now said it wants to wait for a while before grading.

Usually some Icelandic authorities are reported to have said that Prime Minister Johanna Sigurdardottir and Finance minister Steingrimur Sigfusson talked to Swedish and Norwegian colleagues, to receive reassurances of their support. Swedish premier, Fredrik Reinfeldt,  and Anders Borg s are reported by some Swedish media as have shown "some understanding" of the election results and suggested that the loan payments to Iceland could continue in spite of rejections by the Icelandic people to repay the Icesave debts. Possibly, this could make Iceland to ask Sweden guarantee the none postponement of the loan payment for last year.

Swedish Finance Ministry has presented along his spring budget a bill for parliamentary approval makes it possible to pay this loan that should have been paid out last year to Iceland.
Norway's finance minister Sigbjörn Johnsen told Reuters on Wednesday that Norway stands by its commitments to Iceland despite the outcome of the referendum.
By Scancomark.se Team

Key Norwagian Facts

Official Name Republic of Iceland
President Olafur Ragnar Grimsson
Prime minister Johanna Sigurdardottir
Population 320,000
Capital City Reykjavik
Monetary Unit Icelandic Krona
  1 Krona = 100 aurar
Domain Name .IS
Int. Dialling Code +354
Official Language Icelandic
Religion Christianity
Main stock market Name OMX Iceland 6 PI ISK
Internet Speed 4.2 Mbps (2009)
Vital Links
Statistics ICELAND
Government of Iceland
Gateway to Iceland
Iceland trade directory
Iceland data market
Island business information from the prime ministry


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