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Booming Iceland makes second early loan repayment to IMF
Telegraph (UK) ^ | 9:55PM BST 22 Jun 2012

Posted on 06/22/2012 6:25:51 PM PDT by DeaconBenjamin

Iceland, whose economy has recovered rapidly following the 2008 collapse of its banking sector, on Friday repaid $483.7 million in loans to the International Monetary Fund.

Iceland's main commercial banks collapsed in the space of a week as the global financial crisis struck in late 2008, imploding under the weight of huge debts built up during an aggressive overseas expansion.

The early repayment, which follows another one of more than $900 million in March, is a symbolic step for the country of just 320,000 people as it works its way out of a financial meltdown that ravaged the economy.

Iceland's main commercial banks collapsed in the space of a week as the global financial crisis struck in late 2008, imploding under the weight of huge debts built up during an aggressive overseas expansion.

But the country's rebound has been equally surprising. Iceland's economy expanded in the first quarter at its fastest pace since its near-meltdown, powered by a surge in exports, tourism and domestic consumption.

Gross domestic product grew 2.4 percent quarter-on-quarter in the first three months of the year to put annual economic growth at 4.5 percent in the period, the highest since the first quarter of 2008.

The Icelandic government was forced to seek aid from the IMF and its fellow Nordic countries to stabilize its economy, and it imposed rigid capital controls to avert a complete collapse of its currency.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS:

1 posted on 06/22/2012 6:25:53 PM PDT by DeaconBenjamin
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To: DeaconBenjamin

What do they make in Iceland?

They did what we and Europe should do... let it collapse. It has to. You can’t reward bad investments by keeping the people and companies and banks who made them alive. Same goes for the federal debt.

The collapse has to happen doesn’t it? Somebody has to lose.


2 posted on 06/22/2012 6:43:03 PM PDT by Sequoyah101 (You've been screwed by your government.)
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To: Sequoyah101

“What do they make in Iceland?”

Other than hot blonde chicks?

Fish and Fish products. About half of export earnings.

Eco Tourism—it is the scene for “beyond the Wall” on HBO’s Game of Thrones.

Software and Biotech.

Export aluminum.


3 posted on 06/22/2012 7:06:26 PM PDT by Reaganez
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To: DeaconBenjamin

They didn’t bail out the banksters.


4 posted on 06/22/2012 7:24:09 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: DeaconBenjamin
"Mike in East Texas" says that there is no intervention by governments that will stop the free fall deflation that is going on. Economies everywhere will have to hit bottom and be rebuilt on the rubble.

Everything that is going on is "kicking the can down the road"...but will ultimately fail....

...if he is right...we are in for a rough ride for a while

Mike in East Texas

5 posted on 06/22/2012 8:02:25 PM PDT by B.O. Plenty (Elections have consequences....)
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To: Sequoyah101

8 World’s Strongest Man titles.


6 posted on 06/22/2012 8:19:17 PM PDT by EEGator
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To: Sequoyah101

What do they make in Iceland?

I don’t know about now, but when I moonlighted at Home Depot back in 2004, practically all the incandescent light bulbs of every major brand were produced there - something like 90% of the USA’s supply.
Light bulbs...who’d have thunk it?


7 posted on 06/22/2012 9:14:40 PM PDT by mkleesma (`Call to me, and I will answer you and tell you great and unsearchable things you do not know.')
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To: DeaconBenjamin

A subscriber here recently argued that Iceland hadn’t recovered at all. Interesting to note in light of the publication of the posted article above, BTW, that one of the issues with Iceland was its rejection of dependency on and administration by the UK.


8 posted on 06/22/2012 9:40:24 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: DeaconBenjamin
"The early repayment, which follows another one of more than $900 million in March, is a symbolic step for the country of just 320,000 people..."

Wow.


9 posted on 06/22/2012 9:46:29 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: familyop

Maybe Greece could learn some lessons?


10 posted on 06/23/2012 12:53:11 AM PDT by saintgermaine
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To: Sequoyah101

Exactly.

And it should be the bankers. They were the ones who made stupid loans.

“Play stupid games, win stupid prizes” should be the rule for the banking sector.


11 posted on 06/23/2012 3:01:58 AM PDT by NVDave
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To: mkleesma

THAT is a surprise. Whoda thunk it? Not me.

Whatever it is, it is enough to dig themselves out of their hole and they will do it long before we ever will. If we get out of this ditch at all.


12 posted on 06/23/2012 7:01:30 AM PDT by Sequoyah101 (You've been screwed by your government.)
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To: Sequoyah101

Aluminum and fish are the main ones. The Eve online role playing game and genetics research with their relatively inbred population are the only high tech things I can think of.


13 posted on 06/23/2012 7:03:02 AM PDT by tbw2
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