Iceland's bankers keep their cool

摘要

When Fitch revised its outlook for Iceland's sovereign rating from stable to negative in February, due to its overheating economy, large current account deficit and rising external debt, the country hit the headlines. The value of the krona fell, as did the stock market and government bond prices, and some forecasters expect gross domestic product (GDP) to decline next year. But have the analysts — who also criticise the rapid expansion of the banking sector — got it right or are they too negative?