Chronicles Of Depression 2.0: #423: Iceland 8

IMF, Nordics pledge $4.6 billion loans to Iceland

HELSINKI, Finland (AP) ā€” Four Nordic countries and the International Monetary Fund on Thursday pledged a combined $4.6 billion (euro3.64 billion) in loans to help Iceland recover from its economic meltdown.

Finland, Sweden, Norway and Denmark said they would lend the cash-strapped Atlantic island nation $2.5 billion, while the IMF approved a $2.1 billion support package announced earlier.

“We stress that, as outlined in the IMF program, an ambitious multiyear fiscal consolidation program will help Iceland stabilize the economy, including the exchange rate, and reduce public debt over the medium-term,” the Nordic finance ministries said in a joint statement.

Iceland’s banking system collapsed in October under the weight of the global credit crunch. The country’s currency, the krona, has lost half its value since January. Banking transactions to and from the island nation in the middle of the North Atlantic have seized up, leaving its population of 320,000 virtually stranded.

Emphasis added by me.

Still needs watching.

And there should be some very interesting fiction coming out of Iceland in a few years.

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

2 Comments on “Chronicles Of Depression 2.0: #423: Iceland 8”

  1. Mike,

    The IMF seems to have bought a FED franchise for foreign central bankers with currency swaps with Iceland, Poland, Ukrane, Brazil and about 20 other countries.

    Me thinks this is the FED’s way of propping up debtors to European Banks. As the yen carry trade has unwound, many Eastern European countries find themselves upside down with European banks.

    The story is that the swaps will be “unswapped” in April 2009, but I doubt that any recovery by then.

    The IMF wants to make sure everybody has plenty of USD.

    Keep up the good work,

    The Grin Reaper

  2. mikecane Says:

    It’s all going to be wiped out one way or another. I’d rather have it done in an orderly society-saving fashion instead of a global upheaval with millions dead and starving and miserable.

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