FordMustangGT
10-18-2008, 11:09 AM
Russia not yet ready to lend to Iceland
REYKJAVIK/MOSCOW (Reuters) - Russia is not yet convinced it should make a loan to Iceland to help dig it out of a financial crisis, a Russian source said on Friday.
But as the island ran down more of its meager foreign reserves, Iceland said it hoped its biggest bank, Kaupthing, would next week be able to re-open its Luxembourg branch to pay back Belgian and Luxembourg depositors.
Two weeks after a banking collapse destroyed the value of its economy and currency, Iceland has still to decide whether to go to the International Monetary Fund (IMF) for help.
Prime Minister Geir Haarde said a decision was still expected within a week. In the meantime, talks with Russia this week on a loan have not yet led to a deal.
"At the current moment, we do not yet have enough reasons to give them credit," a senior Russian government source told Reuters. "We did not refuse. We are continuing the talks."
The island of 300,000 people is the most serious state victim of the global credit crunch. But banking problems in Ukraine and Hungary have also sent those countries scrambling to the IMF and European Central Bank amid fears they might be next.
http://www.reuters.com/article/euDealsNews/idUSTRE49G5TK20081017
I wonder where this will go? This could be a big win for Mr. Putin :)
REYKJAVIK/MOSCOW (Reuters) - Russia is not yet convinced it should make a loan to Iceland to help dig it out of a financial crisis, a Russian source said on Friday.
But as the island ran down more of its meager foreign reserves, Iceland said it hoped its biggest bank, Kaupthing, would next week be able to re-open its Luxembourg branch to pay back Belgian and Luxembourg depositors.
Two weeks after a banking collapse destroyed the value of its economy and currency, Iceland has still to decide whether to go to the International Monetary Fund (IMF) for help.
Prime Minister Geir Haarde said a decision was still expected within a week. In the meantime, talks with Russia this week on a loan have not yet led to a deal.
"At the current moment, we do not yet have enough reasons to give them credit," a senior Russian government source told Reuters. "We did not refuse. We are continuing the talks."
The island of 300,000 people is the most serious state victim of the global credit crunch. But banking problems in Ukraine and Hungary have also sent those countries scrambling to the IMF and European Central Bank amid fears they might be next.
http://www.reuters.com/article/euDealsNews/idUSTRE49G5TK20081017
I wonder where this will go? This could be a big win for Mr. Putin :)