As Iceland comes back from financial collapse with the help of an austerity programme and support from the International Monetary Fund, it is now looking to return to the international capital markets with a $1bn, five-year benchmark transaction. 

The passporting of financial services across the EU was a much-lauded part of the creation of a single European market. At least until the financial crisis.

Nowhere was hit as hard by the credit crisis as Iceland, but as the country rebuilds its economy and banking sector, it is determined to learn from this harshest of lessons.

The new chief executive of Iceland’s recently nationalised Kaupthing Bank, Finnur Sveinbjörnsson, spoke to Charlie Corbett about what lies ahead for the nation’s crippled banking sector and how the government can restore its credibility.

The time for recriminations is over. Iceland’s political and financial system must be rebuilt, and fast, if it is to maintain the quality of life to which its people has become accustomed. EU membership is increasingly regarded as the only viable option but it will be hotly contested. Writer Charlie Corbett in Reykjavik.

An investigation into the credit default swaps market is adding to the Icelandic banking system’s woes, but banks’ soundness and international reach should help them once the storm is over, writes Silvia Pavoni.

Iceland’s banks insist they have addressed concerns raised over low deposit ratios, a lack of communications and their use of capital markets. Silvia Pavoni reports.

When Landsbanki was criticised for its short-term financing risk, it decided to win back its reputation with two bond issues in the US. Edward Russell-Walling reports on an Icelandic success story.