Iceland and Latvia Growth Boosts European Currency Hopes

andres del risco

Iceland and Latvia have returned to international capital markets, giving the clearest indication yet that the two nations are close to a full recovery from the global financial crisis of 2008.

Latvia was able to offload $500 million dollar worth of its 10 year debt, the first time it has dipped its toes into the global financial waters since they were forced to take an IMF led bail out over 3 years ago.

Iceland went even further by selling $1 billion worth of their 5 year debt at a discounted price. The country was at the centre of the 2008 financial crisis with the combined debt of their three largest banks, Kaupthing, Glitnir and Landsbanki, at one stage exceeding more than 6 times the national GDP of $19 billion.

This latest news represents a fundamental step forward from those dark days then and Iceland’s finance minister, Steingrimur Sigfusson was keen to highlight this. He described the latest deal as “an important milestone for Iceland.”

Latvia’s recovery is equally as significant, even if it is on a smaller scale. The country’s economic output plummeted by 18% in 2009, a record low for the European Union. To see growth now going in the opposite direction is hugely satisfying for all those involved.

The most significant boost for both countries is the return of investor confidence. That confidence, coupled with a steady upward growth, will only lead to further investment interest and a brighter economic feature overall.

Both countries are nearing the end of their bailouts, and plans are already in place to take advantage of the financial freedom which that can bring. Latvia has targeted an adoption of the euro as their primary currency by 2014.

This is great news for a currency which has taken a few big blows recently in the shape of Ireland and Greece experiencing bleak economic periods. Latvia’s planned venture is a significant bright spot on the European financial horizon.

Transfer Money to Iceland

If you are thinking about investing in Latvia, it is definitely a good idea to consider the logistics of Iceland money transfer. Foreign currency exchange rates quoted by banks are usually worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Latvia (which is inevitable if you are looking to make a property investment) be sure to compare the market before you buy your overseas currency.

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Iceland and Latvia Growth Boosts European Currency Hopes

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