“Oh my God, I wouldn’t want to be in the position they are in,” said Icelandic Minister of Finance Steingrimur J. Sigfusson to Bloomberg. In the interview he said he believes Iceland avoided Greece’s fate partly because it has its own currency.
“The Greek position is very different to that which Iceland was or is in,” Sigfusson said. “Greece has the euro and we could debate whether that’s good for them at the moment.”
“The sovereign debt crisis will mark the political debate of the years to come,” Sigfusson said. “What lies ahead for the world is to sober up.”
Sigfusson told Bloomberg that the likelihood of an Icelandic default has all but disappeared now that the IMF has paid out on the second tranche of its loan package to the country. “I am optimistic that we will not need all the 4.6 billion dollars that the IMF programme allows for,” Sigfusson said.
The minister said he would like to see financial practices like derivatives and credit default swaps prohibited. Such practices do nothing for the economy as a whole, he said.