Russia Decides Not to Grant Loan to Iceland Skip to content

Russia Decides Not to Grant Loan to Iceland

By Iceland Review

Russian authorities formally rejected Iceland’s request for a foreign currency loan worth up to ISK 65 billion (USD 525 million, EUR 327). Icelandic Minister of Finance Steingrímur J. Sigfússon said Russia’s decision is not disappointing.

From St. Petersburg. Photo: Páll Stefánsson.

The reason for Russia’s decision is an imminent cut to state expenses due to a national budget deficit, as was explained to Sigfússon during his meeting with a Russian delegation at the International Monetary Fund (IMF) general meeting in Istanbul earlier this month, RÚV reports.

“We were prepared for it and, truth be told, it doesn’t affect us much—we had never expected this loan until maybe later on,” the minister said. “Also, we are reevaluating our need for as extensive foreign currency loans as originally assumed.”

“We have already discussed this with the IMF […] and they were just as calm about the situation as we were,” Sigfússon continued. “If a situation comes up later on in which we want to secure further loan possibilities […], we will simply look at where such loans could come from.”

Click here to read premature news about the Russian loan.

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