The international ratings company Fitch Ratings says that the new Icelandic government’s adherence to the IMF recovery plan will have a very strong bearing on the company’s next sovereign debt risk rating.
Iceland’s sovereign debt risk rating with Fitch is currently BBB- and remains on negative watch. Fitch, like the other international ratings agencies, quickly reduced Iceland’s rating after the banking collapse last October, MBL.is reports.
Fitch Ratings expert Paul Rawkins said in an interview with Reuters that if the IMF recovery plan were to run into serious difficulties because of the new government, the results would be very serious. Rawkins went on to say that major political upheaval is not generally considered a good thing and could increase the likelihood of further reductions in Iceland’s sovereign debt rating.
“This information from Fitch is very similar to that which Kenneth Orchard from Moody’s said last week, where he stressed how important it is that Iceland sticks to the IMF plan. Orchard continued that now is more important than ever for Iceland to secure its place in the international community and maintain good relations with other nations,” Glitnir’s daily statement said Wednesday.
Fitch is a poodle / puppet for the IMF. They are being used as a messenger to tell the Left Greens not to talk about defaulting on foreign debt or interfere with the EU plans, or cut interest from the IMF-mandated 18-22%.
Screw you, IMF, you bunch of wankers.
What a joke, how much lower can you get than minus triple-B. And besides, who cares if Iceland is rated at all?
>Fitch is a poodle / puppet for the IMF.
You might be right, but is Moody’s as well?
Good point about the credit rating. If Iceland has already secured the terms for all the borrowing that it needs for the next X years, then would a poor credit rating affect anything?
Presumably it might affect inward investment though.
An actual default on foreign debt would presumably lead to the IMF funds being pulled, along with any other funds that could be got out. Anyone seen an article that talked of the possible effects of a default?
this just confirms my fear that handing yourself over to the IMF will cause severe trouble….for years to come.
for default on soverirn debt look at Argentina.
IMF is now Icelands bank. Question is, who do you want running the Icelandic economy – the well heeled muppets who causued this or the IMF / ECB (though their ecomnomic / interest rate policies will be painful). Otherwise, where does the money come from, if Iceland cannot access international financial markets?
Iceland was also graded AAA and it was all a lie…
so how seriously should we take your grades? and for whom are they made?
100% agree with Vilhjalm Antonsen and Niels, they are defenetly sending a message and IMF wont let go that easy. and massimo makes a very good point unfortunately they and Moody´s are very influential too, and @Bromley86: yes thet are also puppets of the IMF and world bank, just look at how they have kept america in AAA, when everybody knos they are on the brink of collapsing.
Well, looks like Iceland can’t ditch the IMF. Where else are they going to get this sort of money?
“According to plans, the banks’ equity ratio should be at least ten percent after they have been refinanced. It is expected that the state will provide the banks with ISK 385 billion (USD 3.3 billion, EUR 2.5 billion).”
http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=319136
>Iceland was also graded AAA and it was all a lie…
Was not a lie. Iceland never defaulted on government bond repayments.
Still hasn’t. Just has not given main money owed from bonds back yet. That will happen over course of next year.
Go read IMF report and you will see what IMF plan and of government actually is in agreement. Not difficult even for such limited readers as some on this boards.
@Fisy
Iceland now has to use BORROWED money only to pay interest.
A rating is not just based on the fact if a country pays its interst, but on many other factors too.
Basicaly, the lower the rating, the more difficult it is to obtain loans and the higher the interest you have to pay.
Welcome to the world of the IMF.
I’m from Argentina, I must say that the IMF is an organization “to help countries” bloodthirsty it is only intended to establish a policy of neoliberalism designed to eliminate public ownership and create enmity and discontent among citizens and government “puppets” and obsecuentes and sell homeland, who do not care at all what happens to the people (government of Carlos Menem)
Fortunately Argentina pay its debt with the IMF, but other neighboring countries Qur still have to deal with these “vulture funds”
Iceland should take note of experiences between the IMF and the countries in crisis
@jrs
thx for your comment, it just confirms the general fear of the IMF which only looks at macro economic indicators and does not care at all about ordinary people.
Iceland, you should learn from this lesson and once again become a strong and independent nation. It is in your genes to do it.
From an old Norseman.
A friend of mine just returned from Iceland, giving it and the people high marks (even in crisis). I’m going to travel there to look into buying real estate.
Would someone please post some links to a good real estate web site? Thank you, and sorry for being off topic.
I AM VERY WORRIED FOR ICELAND REALLY. WE SEE NEWS AND ALL THAT, BUT REALITY IS GOING ON IN THE STREETS AND IT IS VERY VERY UGLY TO LOOK AT. EVERYONE DESPERATED APPLYING FOR UNEMPLOYMENT PENSION AND ALL THAT. BUT IT IS NOT REALLY THAT EASY. MANY PEOPLE ARE REALLY DESPERATED, SPECIALLY STUDENTS, MANY OF THEM HAVE LOST THIER PART TIME JOBS AND NOW THEY CANNOT HAVE UNEMPLOYMENT MONEY BECAUSE THEY ARE FULL TIME STUDENTS. THEY ONLY COUNT WITH A LAUGHING MONEY THAT IS NOT EVEN ENOUGH TO PAY THE RENT OF A WHOLE ACCADEMIC YEAR… SO MANY ARE THINKING ABOUT MOVING BACK TO MUMS HOME TO JUST DO NOTHING OR EMIGRATE TO OTHER COUNTRY.
THE SITUATION IS REALLY GETTING VERY DESPERATE HERE IN ICELAND. MOST OF THE PEOPLE I KNOW ARE UNEMPLOYED, MANY HAVE LEFT THE COUNTRY, EACH DAY ANOTHER FRIEND IS TELLING ME THAT THEY ARE LEAVING TO SWEDEN, NORWAY, OR WHEREVER,,, ANOTHER FRIEND IS GOING TO SPAIN AS HE CAN GET MORE HELP THERE FOR HIS STUDIES THAN HERE IN ICELAND.
EVERYONE IS GOING FROM HERE. SO I DON´T KNOW WHAT IS GOING TO REALLY BE THE END OF THIS RUIN… EVERYDAY MORE AND MORE COMPANIES CLOSING, AND FOR A COUNTRY OF 300.000 IT IS TOO MUCH SEEING LIKE MORE THAN 1.000 PEOPLE GOING UNEMPLOYED EVERYDAY… IT IS JUST HORRIBLE TO SEE.
I WISH FOR EXAMPLE THAT THE NORVEGIANS, WHO CLAIM TO HAVE SO MUCH MONEY, WOULD LIKE TO GIVE ICELAND A GOOD HELP, SO ICELANDERS WOULD NOT HAVE TO BEGG FOR MONEY EVERYWHERE OR LIVE ON INTERNATIONAL AID LIKE IMF…
WE HAVE TO SHOW SOLIDARITY WITH ICELANDIC FAMILIES THAT HAVE DIFFICULTIES FOR FEEDING THEIR CHILDREN, CHILDREN WHO GO WITH EMPTY STOMACHS TO THE SCHOOLS OR HAVE NO MONEY FOR BUYING CLOTHES OR BOOKS…
I THINK THAT IF THE REST OF SCANDINAVIA REALLY HAVE SOME HUMAN SENSE, THAT YOU SHOULD HELP THIS PEOPLE WHO ARE IN VERY MUCH NEED OF FOOD, CLOTHES, AND SCHOOL MATERIALS AND ALL THAT…
AT LEAST IF SCANDINAVIA DON´T WONT TO GIVE THE MONEY TO REBUILD ICELAND IT WOULD BE VERY NICE TO SEND EMERGENCY HELP FOR ALL THIS OLD PEOPLE AND CHILDREN THAT SUFFER SHORTAGE IN THE MOST BASIC THINGS LIKE MEDICINES, FOOD, CLOTHES ,ETC…
LETS SHOW OUR SOLIDARITY TO THE POOR ICELANDERS THAT LIVE IN MISERY!!
http://www.mbl.is/mm/fasteignir/
@Mark
Below follows a link to mbl property search
This search is for all listed real estate in Iceland
I am afaid its in Icelandic
There is a dropdown menu
!st on the left you have to check a box of which town or postal area you want to be in
2nd on the left you check a box for the kind of property
you are looking for-
# Fjölbýli – appartment
# Einbýli – detatched property
# Hæðir – 1 level of house
# Parhús/Raðhús – semi detactched/linkhouse
then below pull down boxes ,the most important are
Fermetrar: – size in square metre
Herbergi: – how many rooms
Verð (m.kr.) – price in isk
I hope this is of some help to you
http://www.mbl.is/mm/fasteignir/
we all got to work that kreppa, girlfriend. The IMF just wants more kreppa in other countries, so they can control their policies
Mark:
You are crazy to think about buying in Iceland. Consider this, Iceland is going to lose a percentage of its best paid population to emigration. There has already been over building of property in Iceland. There is no shortage of land in Iceland. Unemployment is rocketing. There could be widespread house repossession due to the crisis.
The currency will devalue significantly (-50%) when the IMF funded fix is removed – this could happen at any time.
Hang in there people! Most of papers and news by people who do not have a clue. They just fill space and write papers. Dig in, survive, and it will pass.
History does not like those who will not learn, and that is why history repeats itself. This will pass. It allways does.