29 January 2013

Moody's has issued a comment

Moody's has today issued a comment on the EFTA court decision. A few points from Moody's comment:

The EFTA Court decision in the Icesave dispute is the most favourable possible outcome for Iceland, ending significant legal and financial uncertainty for the government. An earlier agreement with the British and Dutch governments, which was rejected by Icelandic voters in a referendum in April 2011 and led to the ESA’s legal case, would have resulted in significant payments due from the Icelandic state. The International Monetary Fund (IMF) estimated the potential cost at around 6%-9% of Icelandic GDP under most scenarios, but at up to 20% of GDP in a worst-case scenario.

The comment can be found here: Moody's Iceland Jan 2013 (pdf)