‘No’ to Icesave does not damage Iceland’s credit rating

kronurThe result of Iceland’s so-called Icesave referendum has no effect on the creditworthiness of the nation, at least not directly. This is the conclusion of the ratings agency Standard and Poor’s, which published its report yesterday.

The fact that the ‘no’ vote was so widely predicted means the outcome of the vote has had no effect on Iceland’s creditworthiness. Standard and Poor’s also makes special note in its report that the referendum rejected a proposed repayment plan from December; it did not reject repayment of Icesave deposits to the Netherlands and the UK altogether.

The report says Iceland’s sovereign credit rating will be revisited once it has become clear whether or not the referendum has had an effect on Iceland’s international IMF-led reconstruction package. The IMF’s latest review is due soon. There is still a lot of uncertainty surrounding Iceland’s rescue package while the Icesave issue goes unresolved.

Standard and Poor’s has already taken into account the fact that the Icesave issue could potentially remain unresolved for a long time due to upcoming elections in both the Netherlands and the UK; but believes, on the other hand, that the Icelandic government will not fall due to Icesave, RUV reports.

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