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Iceland Stress Tests, Pimco Probe, Barclays: Compliance

Iceland is stress-testing scenarios that show how the island’s exchange rate and capital account will cope if creditors in the failed banks are repaid, Finance Minister Bjarni Benediktsson said.

The government plans to put together a road map this year that will clarify how creditors, a number of which are U.S.- based hedge funds, will be reimbursed without the capital outflow’s hurting Iceland’s exchange rate, Benediktsson said. An agreement would mark an end to an investor dispute that has lasted since Iceland’s biggest banks defaulted on $85 billion in October 2008.