IMF Says Bailouts Iceland-Style Hold Lessons in Crisis Times

[Winehole23]

Iceland holds some key lessons for nations trying to survive bailouts after the island’s approach to its rescue led to a “surprisingly” strong recovery, the International Monetary Fund’s mission chief to the country said.

Iceland’s commitment to its program, a decision to push losses on to bondholders instead of taxpayers and the safeguarding of a welfare system that shielded the unemployed from penury helped propel the nation from collapse toward recovery, according to the Washington-based fund.

“Iceland has made significant achievements since the crisis,” Daria V. Zakharova, IMF mission chief to the island, said in an interview. “We have a very positive outlook on growth, especially for this year and next year because it appears to us that the growth is broad based.”

Iceland refused to protect creditors in its banks, which failed in 2008 after their debts bloated to 10 times the size of the economy. The island’s subsequent decision to shield itself from a capital outflow by restricting currency movements allowed the government to ward off a speculative attack, cauterizing the economy’s hemorrhaging. That helped the authorities focus on supporting households and businesses.

http://www.businessweek.com/news/201...crisis-nations

[Wild Cobra]

Looks like the Vikings may have their together.

[symple19]

So basically, the Icelandic government decided not to protect the rich, and instead focused on protecting their social welfare system and small business

magnificent

[angrydude]

Iceland gave England the shaft. And England got pissed. Really really pissed.

then Iceland's economy got better.

lol IMF.

And everyone wanted iceland to join the Euro. lol