Iceland’s PM Has Faith in the ISK Skip to content

Iceland’s PM Has Faith in the ISK

Despite the plummeting currency rate of the ISK for the past few days, Iceland’s Prime Minister Geir H. Haarde is certain that the government’s actions to improve the economic situation last week will eventually strengthen the currency.

Haarde was the keynote speaker at an international conference for investors, organized by the Euromoney Institutional Investor magazine, in London yesterday, reports.

In his speech, Haarde emphasized that despite recent turbulence in the international economy, the foundation of the Icelandic economy is strong. The prime minister said that the trade deficit would likely decrease later this year and with interest rates due to drop as well.

In a Q&A session after the speech, Haarde was asked for how long he thought Iceland could afford having a currency of its own. The prime minister replied there were more pros than cons involved for Iceland by having its own currency.

Haarde however said that the current currency rate of the ISK is unusually low, even when the reduced flow of financial resources to the country after the completion of heavy industry project was taken into account.

The representatives of some of the main loan institutes in the world attended the conference in London, but Haarde said he had not discussed currency loans to strengthen the ISK with any of them.

Click here to read more about the current situation of the ISK.

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