According to interim statements published by the Central Bank of Iceland, Seðlabanki, on Friday, Iceland’s current account deficit in the first quarter of 2005 amounted to ISK 31 billion, up from ISK 13 billion last year.
At the end of the first quarter 2005, net foreign debt amounted to ISK 804 billion, up from ISK 690 billion since end of last year.
Seðlabanki said that the increase in net debt could not be fully accounted for, neither by changes in the current account nor by changes in prices. The estimated error in measuring the current account was also said to be “unusually high”.
