Iceland defied the EU when its banking crisis hit and let its banks default. While Greece, Ireland, Portugal, Spain, and Italy will continue to suffer under their current and upcoming nationalized debts, Iceland paints a rosier economic picture.

Iceland, where a 2008 banking implosion left bond investors trying to recoup $85 billion, can now boast a lower risk of default than the average for the European Union. The central bank signaled this month it may continue to raise rates to support the currency as the U.S. and the euro area resort to emergency easing to keep their economies afloat. Iceland’s rate rise comes as investors are turning to emerging markets to tap into faster growth rates and lower debt levels.
The Icelandic krona strengthened for a second day, rising 0.3 percent to 113.14 per dollar as of 9:33 a.m. London time.

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