Iceland's Fridriksson dismisses stability concerns

In an effort to reassure investors, Ingimundur Fridriksson, a board member at the Central Bank of Iceland, has denied that the country's banks and economy are unstable.

"The economy is fundamentally sound," Fridriksson said on 2 April, adding that the country's banks had little exposure to subprime debt.

Iceland's three biggest banks have funded the growth of the country's $16 billion economy by selling debt, but the global credit crunch is making that strategy more expensive and concerns hav