From Iceland — Economic Outlook Growing More Optimistic

Economic Outlook Growing More Optimistic

Published October 14, 2009

Iceland’s banks appear to be nearly fully reconstructed, according to the Economics and Business Minister, and Icesave negotiations between Iceland, Holland and the UK seem to be wrapping up just the small details.
Gylfi Magnússon, the Minister of Economics and Business, told RÚV that the full reconstruction of Iceland’s banks should be completed in the coming weeks or even days. At that time, a full assessment will be done of their assets, as well as those of Kaupþing, the Icelandic stock exchange. Magnússon told reporters that he expects the government to own all or most of Landsbanki, and little to none of Íslandsbanki and Kaupþing.
In related news, sources closed to Fréttablaðið report that the Icesave negotiations are near completion, with British, Dutch and Icelandic authorities only tieing up loose ends and going over minor details at this point. A new bill, writ largely from the outcome of this meeting, to be voted on in parliament is expect to be completed either today or tomorrow.
The news is part and parcel of what statistically looks like an upswing in Iceland’s economy. Unemployment has been dropping from its over 9% high in April to 7.2% today, and foreign bank managers have also begun expressing an interest in “getting in on the ground floor” as Iceland begins its recovery.

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