We're still concerned, however, about the imbalances in the economy, but it's positive that the central bank is reacting.

The DRC has been successful recently at turning its economy around, from contraction in the early 2000s to estimated growth of seven per cent in 2005. This is particularly impressive considering the challenges this country has faced. The DRC is rich in human and natural resources, and IFC will continue to promote private sector development in support of the country's economic regeneration.

We see a substantial risk of a financial crisis as an integral part of an Icelandic 2006-2007 recession. The funding squeeze of the banks will probably force them to reduce lending to domestic players, and force a sell off of external assets.

We conclude that Iceland on almost all measures looks worse than Thailand did before its crisis in 1997 and only moderately more healthy than Turkey before its 2001-crisis.

In a low-yield environment, there was a lot of interest in high-yield markets such as the Icelandic. But with yields on the rise in Europe and the U.S., we want to see a lot more quality before we feel comfortable investing, as high yields alone are no longer enough.

People want to have an experience when they take a shower. They want to enjoy themselves in a standing spa. But they don't have the time to lay in a whirlpool for a half-hour.