Norway boosts aid
to Iceland
 Prime Minister Jens Stoltenberg says it's "natural" to help a Nordic neighbour in need. PHOTO: MORTEN HOLM/SCANPIX |
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Norwegian Prime Minister Jens Stoltenberg said on national radio Monday morning that it was "only natural" to step in and help a fellow Nordic country when it faced such acute problems as Iceland does.
Stoltenberg noted that Iceland faces declines in national revenues, acute liquidity problems and rising unemployment.
He said it was most likely that Norway, which already has promised aid, would extend and increase its offer of credit from Norges Bank, Norway's central bank.
Iceland also stands to be granted an emergency loan equivalent to around NOK 14 billion (USD 2 billion at current exchange rates) from the International Monetary Fund. Stoltenberg said he thinks that's a better solution than the prospect of seeing Iceland borrow money from Russia.
Stoltenberg said the other four Nordic countries (Norway, Sweden, Denmark and Finland) could build on the IMF funding.
"That's a much safer and better arrangement than having just one country (Russia) stand for the entire loan," said Stoltenberg, stressing the need for Nordic cooperation.
Tackling trouble from Glitnir
Icelandic officials now handling the assets of Reykjavik-based Glitnir Bank, meanwhile, said they will try to pay claims made by Norway's export finance agency Eksportfinans. The Norwegian agency last week accused Glitnir's Norwegian operation of misappropriating funds involving loans it had handled as an agent for Eksportfinans.
Arni Tomasson, leader of the new emergency board now running Glitnir Bank, said the alleged misappropriation was a result of errors, not intentional fraud. He said the bank's administrators feared Eksportfinans' claims would sour relations with Norway itself.
Glitnir's administrators stated that relations between Iceland and Norway were "very important," and if the bank had made mistakes, they would do everything in their power to resolve the trouble, in close dialogue with Eksportfinans.
Nina Berglund/NTB
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