Valarius wrote:Funny thing. You guys remember Iceland? One of the countries in "PIIGS" that were set to crash and burn if they defaulted?
http://www.ft.com/cms/s/0/2f8e6e72-5d71 ... z1nHo1lhC6Arion, the bank created from the assets of failed Kaupthing, has established a €1bn international covered bond programme, the first by an Icelandic lender since the country’s banking crisis.
And after reorganizing, rewriting some laws, reinvesting in better things and doing other stuff, they got their act together well enought that Fitch raised their credit rating over investment grade again.
http://online.wsj.com/article/BT-CO-201 ... 09137.htmlFitch Ratings lifted its rating on Iceland to investment grade, citing the nation's progress in stabilizing its economy and pushing ahead with structural reforms.
The upgrade puts Iceland's long-term foreign currency issuer default rating at triple-B-minus, placing it on the first rung of investment-grade territory. The outlook is stable.
One thing Iceland has going for it, is the switch from petroleum they are undergoing. Starting with municipal buses, they are starting to use hydrogen as a fuel, more and more. With their plentiful geothermic resources, they can generate steam a-plenty to generate electric, which they are using to fracture seawater (another plentiful resource for them) to get the hydrogen. These resources are not shared by other countries, either in this pairing, or as separate things in the way Iceland has them- either the geothermal is too expensively tapped, or the seawater isn't there (no coastline) for some countries.
This is only one aspect to what I'm sure is a many pronged approach to solving their problems, but it's certainly proving to be a productive endeavor.