Iceland Was Right on Bondholders, Gudmundsson Says
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Iceland was right not to bail out bondholders in the country’s banks and wasn’t ever in a position to support creditors because of the size of the debt, central bank Governor Mar Gudmundsson said.
“Bondholders should not rely on the government stepping in and bailing them out,” Gudmundsson said after delivering a speech at the Goethe University of Frankfurt’s House of Finance yesterday evening. “They should do their due diligence.”