Norway Considers Loan to Iceland Despite Icesave Skip to content

Norway Considers Loan to Iceland Despite Icesave

Foreign Minister of Norway Jonas Gahr Stoere has loosened his demands towards Iceland and is considering the possibility of disbursing a loan to the Icelandic state through the International Monetary Fund without a solution to the Icesave dispute.

Photo by Páll Stefánsson.

Norwegian newspaper Aftenposten also reported that it has been discussed to grant a loan to Iceland outside the IMF bailout package but in cooperation with the EU, reports.

“Icelanders have requested broad international support. If other versions of financial support are suggested we won’t rule them out,” Stoere said.

Tomorrow, the Nordic foreign ministers will meet in Copenhagen where the Icesave dispute will be discussed among other topics.

“Norway’s assistance is tied with the IMF’s program and in our view that program is not dependent on a solution to the Icesave dispute as long as the program’s conditions are being fulfilled,” Stoere added.

“Icelandic authorities strongly state that the conditions are being fulfilled and therefore we should be more open for discussing this plan within the IMF,” the minister said.

Stoere emphasized that the Nordic countries should under no circumstances stand in the way of the matter being discussed within the IMF.

However, all Nordic states apart from Norway demand that the Icesave dispute be resolved before their loans to Iceland are disbursed through the IMF. Stoere said the situation will be discussed during tomorrow’s meeting.

Stoere also said that to his knowledge British and Dutch authorities have not tried to prevent the execution of the IMF’s economic stabilization program for Iceland.

And earlier this week managing director of the IMF Dominique Strauss-Kahn declared that he was prepared to continue with the program’s execution regardless of how the Icesave dispute progresses.

Click here to read the latest story about Icesave and here to read more about Iceland and the IMF.

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