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A chill falls over market in Iceland AROUND THE MARKETS MARKETPLACE by Bloomberg

Aaron Pan
International Herald Tribune
04-04-2006
No European stock market has been more rewarding for investors than Iceland's over the past three years. Now, few markets are causing more pain.The benchmark ICEX 15 index, weakened by negative analyst reports on the financial condition of the country and its banks, has fallen 15 percent since touching a record in mid-February. In dollar terms, it is the worst performer this year among 20 European markets.The island nation of 300,000 people in the North Atlantic faces a slumping currency, accelerating inflation, ballooning corporate debt, a record current account deficit and rising interest rates. Investors who had snapped up shares of ...

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