'Recovery of Icelandic economy threatened'
``The recovery of the Icelandic economy is threatened by the delays in the resolution of the Icesave dispute, which constitutes an obstacle in the resumption of official and private financial flows into the country,'' Moody's analyst Kenneth Orchard said in a statement.
The crisis-stricken Icelandic economy shrank by a record 6.5%in 2009, having grown by 1% in 2008 and 6% in 2007, official data showed today.