The Globe and Mail’s Report on Business highlights the telling difference between those that succumb to sovereign insolvency and those who can afford to stave it off – While America, Canada, and most of Europe have near-zero central bank interest rates, Iceland’s interest rate is down from a whopping 18% to a hardly paltry 11%.
From the article:
The benchmark [interest] rate, which peaked earlier at 18 per cent but had held at 12 per cent since June, now stands at 11 per cent. Compare that to the Federal Reserve’s rate of almost zero. The central bank of Iceland, whose banking system buckled to the credit crisis, projects the economy will shrink 8.5 per cent this year and 2.4 per cent next year. In 2011, though, it finally sees a return to growth, of 2.2 per cent, in 2011.