Norway Willing to Grant Giant Loan to Iceland? Skip to content

Norway Willing to Grant Giant Loan to Iceland?

By Iceland Review

Chairman of the Icelandic Progressive Party Sigmundur Davíd Gunnlaugsson stated yesterday that the Norwegian Center Party has opened the channels for a giant loan to Iceland, up to ISK 2,000 billion (USD 16 billion, EUR 10 billion), through bilateral agreements.

Copyright: Icelandic Photo Agency.

This is a higher loan than Norway promised to grant to Iceland through the International Monetary Fund bailout loan package, reports.

Gunnlaugsson said that Progressive Party MP Höskuldur Thórhallsson has been in Norway for the past few days to discuss the loan.

“These ideas depend on the reactions of the Norwegian Socialist Party and I believe they base their opinion on what the Left-Greens will do here in this country,” Davídsson said, emphasizing that the Left-Greens play a key part in how this matter unfolds.

“If such an agreement could have been established before Ögmundur [Jónasson, former minister of health] stepped down from the administration, it would likely have helped solve the Icesave dispute,” Gunnlaugsson stated.

However, the loan is not out of the question and the Progressive Party is waiting to discuss it with Prime Minister Jóhanna Sigurdardóttir. It has already been discussed with representatives of the Left-Green Movement, Gunnlaugsson said.

Gunnlaugsson would not mention the terms of the loan at this stage.

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