Creditors of Iceland's failed banks are set to lose about $US3.6 billion no matter which party wins next month's parliamentary elections.

''Everyone realises that these krona claims will be written down - in one way or another,'' Bjarni Benediktsson, head of the Independence Party, the largest opposition group, said in an interview. ''The winding-up proceedings of the failed bank estates will be completed using a completely different, and much weaker, exchange rate than the official one.''

Iceland's economy continues to recover from its 2008 collapse, but there is a long way to go. Credit:Reuters

Icelanders head to the polls on April 27, four years after the Social Democratic-led government ousted its pro-deregulation predecessor following protests over economic mismanagement. The country's three largest banks defaulted on $US85 billion in debt in 2008, sending the economy into its worst recession in six decades and the krona into free fall.

Most polls suggest the government of Prime Minister Johanna Sigurdardottir, who also backs write-downs on bank creditors' krona claims, won't be re-elected.