As part of its journey back to prosperity after a severe recession, Iceland made a belated return to the international markets with a successful bond issuance. David Wigan reports.

Iceland’s finance minister, Bjarni Benediktsson, talks about economic recovery, plans to stabilise the banking sector and why the country will not be joining the EU any time soon.  

Iceland's banking sector has recovered impressively from its 2008 collapse, and the banks formed from the ashes of that period are performing well. However, the clouds of the past still linger, and the winding-up processes of the failed Kaupthing, Glitnir and Landsbanki are still to be resolved.

Iceland's rebuilding efforts following its economic collapse have borne some fruit, with the IMF predicting 2.5% growth for this year, but the country is still faced with a number of challenges.

A successful sovereign bond issue in June 2011 indicated that Iceland is gradually returning to financial normality after the collapse of its banking sector in 2008. But the three large banks that defaulted are still mired in controversy.

Iceland has come through a disastrous banking crisis and its president maintains that the country's new institutions are serving the economy well, despite the ban on them making overseas investments. Writer Spencer Anderson