Monday 16 September 2019

Iceland radicals 'not an investment risk'

Left-Green Movement leader Katrin Jakobsdottir
Left-Green Movement leader Katrin Jakobsdottir

Nick Rigillo and Ragnhildur Sigurdardottir

Iceland may soon have a radically new coalition government, led by a young leftist who will rely on support from the anti-establishment Pirate Party for the slimmest of majorities.

According to the man who was among the first to warn of Iceland's economic meltdown in 2008, investors now have nothing to panic about.

"Iceland will not be a fundamentally different country to the one it is today," said Lars Christensen, founder and chief executive officer of Markets and Money Advisory.

Mr Christensen expects a degree of continuity with the policies of outgoing Prime Minister Bjarni Benediktsson, whose government has steered Iceland's exit from crisis-era capital controls.

After entering its 2008 economic collapse rated AAA at Moody's Investors Service, Iceland's subsequent fall from ratings grace sent it as low as Baa3 in 2009. That's since been partially reversed, and the country now carries 'A' level ratings from Moody's, S&P Global Ratings and Fitch.

Left-Green Movement leader Katrin Jakobsdottir has been handed a mandate to form a ruling coalition after the October 28 snap election. The Left-Greens have been holding talks with the Social Democrats, who led a left-of-centre government between 2009 and 2013. (Bloomberg)

Irish Independent

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