Minister of Business Gylfi Magnússon, in an interview with the German
newspaper Welt am Sonntag, told reporters that Iceland’s economic
prospects were dark, but that there was a bright side to the situation.
In the interview, Magnússon mentioned that the nation’s debts will significantly rise, and will rise with Iceland’s GNP.
“Iceland’s debts will also rise due to a significant decline in the budget”, Morgunblaðið reports, “The gross debt of the nation will be about as much as our GNP.”
On the other hand, Magnússon points out, Iceland’s current economic situation is only slightly worse than what it was in Belgium and Italy before the economic crash last fall.