President Olafur Grimsson told the BBC that small independent countries in northern Europe have fared well.

BBC: Olafur Grimsson

"Europe is the problem, " Olafur Ragnar Grimsson said at the World Economic Forum in Davos, Switzerland.

BBC: Davos 2013: Iceland slams Europe over fishing policy

President Olafur Ragnar Grimsson and Iceland's Parliament had agreed to a repayment plan drawn up as what the press their calls the Icesave law, named for the high-interest accounts at the heart of the mess.

FORBES: Debt On Ice