Iceland Bats Down Speculation About Debt Writedown

Nov 19 2013 | 10:22am ET

Creditors are either way off—or underestimating their peril—when spit-balling about how large a haircut they'll have to take on Icelandic bank debt.

Finance Minister Bjarni Benediktsson told Bloomberg News that rumors of a 75% write-down are "exaggerated." But he added that the actual write-down could be lower—or higher.

"The 86% was mentioned at a lunch meeting, very unofficially," Benediktsson said.

"We want to work toward a solution on a professional basis," he added. "I aim at creating a solution in the coming weeks and months that we can work with."

Iceland has said it will not lift capital controls until it reaches a deal with the creditors, which include many hedge funds that bought the claims against three collapsed Icelandic banks for pennies on the dollar. Among the hedge funds involved at Davidson Kempner Capital Management, Hayman Capital Management and Taconic Capital Advisors.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...