Financial Times FT.com

Iceland looks to restructure $3.6bn of foreign-held debt

By David Ibison in Reykjavik

Published: February 27 2009 02:00 | Last updated: February 27 2009 02:00

Iceland's new government is working on a plan to restructure billions of dollars of its bonds held by foreign investors as part of a drive to restore confidence in its shattered economy.

Foreign investors own up to ISK400bn ($3.6bn, €2.8bn, £2.5bn) in krona-denominated bonds which the central bank fears could be dumped once capital controls imposed during its banking crisis are removed.

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