REYKJAVIK — Iceland is close to inviting hedge funds and other creditors in the nation’s failed banks to discuss their claims for the first time, two people close to the matter said.Iceland’s government, which has so far ignored creditor requests to meet, is now ready to listen to their demands and explain its position after being briefed on the legal ramifications of doing so, the two said, asking not to be identified because the decision hasn’t yet been made public.Talks may take place as early as within the next month, they said.The meeting would mark a milestone in Iceland’s efforts to normalise its relations with international capital markets. The 2008 default by Kaupthing Bank, Glitnir Bank and Landsbanki Islands on $8bn in debt made Iceland a global example of how financial systems can destroy an entire economy. Iceland averted a sovereign default by rejecting pleas to save its banks. Since then the nation has relied on currency controls to prevent a capital flight and to pro...
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