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Iceland’s New Leaders Gear Up for Spending Drive

  • Iceland’s banks carry capital far above minimum requirements
  • Iceland forms new coalition spanning full political spectrum
Bjarni Benediktsson
Bjarni BenediktssonPhotographer: Arnaldur Haldorsson/Bloomberg

Iceland’s new left-right coalition government is gearing up for a spending drive to fix the nation’s dilapidated infrastructure after years of austerity and it could tap its banks for the some of needed cash. 

Iceland got a new government on Thursday, in a coalition between the Left Greens, the Progressive Party and the conservative Independence Party. The parties have pledged to spend more on roads and other infrastructure to catch up on an estimated 400 billion kronur ($3.9 billion) in missing investments.