The potential USD 500 million loan from Russia to Iceland will not go ahead, Reuters reports.
The Russian finance ministry announced its decision yesterday. The given reason for the rejection is that the Russians are dealing with their own severe economic downturn.
Visir.is spoke with an anonymous Icelandic negotiator who said the Icelandic delegation had lost all hope of the loan long ago, as the two countries have been negotiating it for over a year already.
The delegation member also said that due to Iceland’s IMF-led package which was not in place a year ago, the Russian loan was no longer seen as essential.
For the record
Thursday, October 08, 2009 2:40 PM
Polish loan finalised
The Icelandic and Polish authorities have negotiated a loan from the latter to the former. According to a joint press release, Poland will lend Iceland PLN 630 m, which roughly equals USD 200 m. The disbursement of the loan is dependent on the progress made under the International Monetary Fund economic programme and will be linked to the results of IMF reviews. The loan has a term of 12 years, with a five-year grace period. The Treasury will acquire Polish Treasury bonds, which will become part of the Central Bank of Iceland’s foreign exchange reserves. Lending costs will take the form of an interest premium of 2% per annum until year-end 2015 and 1.3% per annum thereafter. Repayment will take place on four payment dates in 2015, 2017, 2019 and 2022.
Maybe borrow some uranium from Russians instead. It’s easy to sell such stuff.
Too bad. Iceland deserves a loan from Russia.
I really don’t think the Russian Finance Ministry was ever really serious. Think they were jerking the Iceland government all along.
How much help have Yanks provided?