Icelanders’ belief in a positive future for their country appears to be growing, according to a new poll. Read the full story

On Tuesday in the Russian capital of Moscow, President Barack Obama had a meeting with a Russian Prime Minister Vladimir Putin, offering a true partnership. Officials of the United States described the two hour talk as “very successful”. To the Russian people, especially the younger population, his speech brings lots of hope for Russia’s new future.
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The following information comes unedited from a government press release:

Agreement has now been concluded on a Stability Pact which forms a cornerstone in the government’s plans for economic reconstruction. Leaders of central and local government, employers’ and employees’ associations signed the agreement in the Cultural House today. The Stability Pact covers many of the principal factors concerning which uncertainty has been high in recent months and will serve as one of the main pillars to support further rebuilding of the economy. Read the full story

Prime Minister Johanna Sigurdardottir wished Iceland congratulations on the signing of its new stability pact at a ceremony this afternoon at the National Culture House. Read the full story

At The Copenhagen Institute for Futures Studies we have recently published a report about “Opportunities in crisis”. The report is written for our member companies and for their use only.

But times are extraordinary; and extraordinary solutions should therefore be applied. Read the full story

The four biggest Icelandic banks have all passed the latest ‘stress tests’ imposed on them by the Icelandic Financial Supervisory Authority, according to Reuters.

The stress tests hit the banks with simulated severe shocks that could in theory affect the value of shares, market bonds, appropriated assets, non-performing/impaired loans, and the Icelandic Krona.

“The results from the stress tests indicate that the capital ratios of the banks are solid and can withstand considerable financial shocks,” said Icelandic FSA director-general, Jonas Jonsson.

Glitnir, Kaupthing, Landsbanki and Straumur Burdaras banks all have capital ratios above the internationally required eight percent; and would be able to maintain their positions even in the event of severe simultaneous shocks, the FSA believes.

2008 has been a difficult year for the Icelandic economy, and especially its banks. Amid rumours of impending catastrophe, the country has embarked on an information campaign to reassure international investors.

The banks have repeatedly stated that they are built on solid foundations and do not deserve the high CDS ratios and low foreign confidence they have suffered in some quarters lately.

The results of the financial stress tests are the latest in a line of more positive headlines the banks hope will reinforce their claims of stability to the wider financial world.

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Bank results dispel fears over Icelandic economy
Conde Nast defends Icelandic economy
Economics professors argue over Iceland

A new report from Glitnir indicates that despite cooling economic conditions, Iceland’s seafood industry has a strong outlook for the future, according to reports in intrafish.co.uk.

In order to succeed, like other industries, the fishing industry will need to deal with rising oil prices. Unlike other industries, however, the Icelandic seafood industry will have to tackle the fluctuating nature and policy on cod stocks as well as competition in Asia.

Glitnir pointed out that a growing number of Icelandic seafood companies are taking themselves off the Nasdaq OMX exchange, a factor which is reshaping the industry. Another key factor is the increasing number of consolidations in the industry.

Together, the ten largest fishing companies in Iceland hold approximately 53 per cent of the total allowable catch allocated by the Icelandic government, an increase from 24 per cent in 1992.

Profits have also risen considerably in the industry, despite the increasing price of oil and equipment. Since 1980, profits have almost doubled and currently stand at around 20 percent.

Another change in the industry has been its diminishing role in the Icelandic economy. In 1990, marine products accounted for 56 per cent of all Icelandic exports whereas in 2007, that figure dropped to just 32 per cent.