Iceland to relaunch rescued banks
Some market watchers said the recapitalisation figure was surprisingly low given the scale of Iceland's financial system.
"Very low, if you compare to what the banks looked like two years ago, with balance sheets around 150 billion dollars or so," Carl Hammer, a currency strategist at SEB in Stockholm, was quoted as saying by Dow Jones Newswires.
"They (Iceland) seem to be on the right track to recovery," added Hammer.
The decision came only days after Iceland opted to begin talks on joining the European Union.
Iceland's parliament last Thursday voted in favour of applying for EU membership, opening the way for negotiations to begin with the 27-nation bloc.
The government has argued that joining the European Union would benefit Iceland, claiming it would bring an end to the economic turmoil that erupted after the collapse of its once-booming financial sector in October.
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Last Updated (Monday, 20 July 2009 13:44)
