Iceland Seeks Assistance from Nordic Neighbors

The Icelandic government formally requested loans from the other Nordic nations yesterday. Prime Minister Geir H. Haarde would not mention any specific amounts as he did not want to put any pressure on his Nordic colleagues.

In an interview with Reuters yesterday, Haarde said that Iceland required a loan of USD 4 billion (EUR 3 billion), in addition to the USD 2 billion loan which Icelandic authorities have applied for at the International Monetary Fund (IMF), Fréttabladid reports.

“I can imagine that the Nordic countries will be very important [allies], but we have also talked with Russia, Japan and others,” Haarde told Reuters. Other possible loan granters were the European and American central banks, he added.

The Nordic prime ministers decided at their meeting in the Nordic Council in Helsinki yesterday to appoint a task force to work on proposals on how to help Iceland work its way out of the economic crisis.

Haarde told Morgunbladid that attendees had expressed their support for Iceland and that their support is based on Iceland’s request for loan from the IMF as it is considered a step in the right direction towards requesting further loans.

“We have emphasized that we are not asking for donations or sponsorships but rather loans that we intend to repay,” Haarde said.

icelandreview.com