And one comment above made a good point that if your currency is worth nothing in the exchange, then you basically have no money outside of your country. But hey, what a better time to buy currency? When it is worth nothing already and the only way it can go is up!

I wonder if there is any country on the planey that is not indebt. If there isn’t, I don’t understand how that is possible, haha.

Present Reserves USD 2.5bn IMF loan USD 2.1bn

However big brother (the IMF) records reserves of ca USD 3.5bn
http://www.imf.org/external/np/sta/ir/isl/eng/curisl.htm

As you appear to be a keen student, a short overview here gives an account and comparison with other countries to the end of 2007
http://www.seðlabanki.is/lisalib/getfile.aspx?itemid=6315

The Icesave debt does not appear to be accounted for here.
Probably looking at something around a total 110% of GDP in debt.

“If there is just 281 billion kr. in foreign currency reserves that does not seem to be very much”
Considering the foreign reserves were cleaned out by Nov 2008, it’s not too bad.
Are they not the borrowed reserves, banked (not spent) from the IMF loan?

If there is just 281 billion kr. in foreign currency reserves that does not seem to be very much , especially since many bonds are maturing in 2011 and need to be paid out.

“The Treasury has applied active debt management in the finances of the Treasury”

What does this actually mean? I get very suspicious when a chronically endebted party talks about “active debt management”.

“The liquid position of the Treasury is strong,”

Really? there might be a lot of krona in the treasury but foreign reserves are just 281 billion and that is waht matters. The kronur is practically dead.

“The financing needs of the Treasury due to deficits have been fully met in the domestic bond market, indicating the faith that domestic investors have in the Treasury.”

And how about the INTERNATIONAL bonds which need to be repaid ?(sorry for the caps:-))

So the figures which are presented seem favourable but what are they really worth?

You are letting through ALL CAPS posts again. You know what that means for the quality of debating here in the threads where ALL CAPS is let through.

UK has POUNDS, ONE OF THE STRONGEST CURRENCIES IN THE WORLD.

ICELAND has ICELANDIC KRONURS, WICH IN FACT HAS NO VALUE AT ALL IN THE INTERNATIONAL MARKET. WICH LITERALLY MEANS THIS:

ICELAND HAS NO MONEY TO PAY!!

BROMLEY, I THINK YOU EASILY FORGET, MOST OF THE TIMES, THE FACT THAT ICELAND IS RUNNING REALLY SHORT IN FOREIGN CURRENCY.

ALL THE NUMBERS THAT ARE POSTED HERE DO NOT MEAN ANYTHING AT ALL, UNTIL THE COUNTRY COUNTS WITH A SUBSTANTIAL RESERVE/BASKET IN FOREIGN CURRENCY. UNTIL THAT DOES NOT HAPPEN ALL NUMBERS ABOUT ICELANDIC HAS THE SAME VALUE AND MEANING AS THE ICELANDIC KRONA…

JUST TOILET PAPER…

Looks like Iceland is with 78%, if this is correct, not that bad in shape, considering what has happened here and how often we were declared bancrupt and finished. The Euro would have burried us if we had have him already:-) the weak Krona was helping a lot because we have eversince, also throughout the crisis, a export surplus, and that helps if yuo currency is weak. But also, we shall not forget that we just have no experience any more with a situaiton like this! I eman, even the unemployment rate for example is not above Eurpean average here, but because there was basically no unemployment here before for such a long time, it is hard to handle. Also, these numebnrs are not good because other countries are worse, but it is abeginning of getting better and that is what we have to work for.