Eirikur Hjalmarsson, Reykjavik Energy Public Relations officer, told RUV that the loans are necessary because of the severe financing crisis that caused a near total drying up of funds a year ago which have the potential to slow down or stop projects.

It was therefore decided to look for loans on the domestic short-term market and a short term loan of ISK 5.5 billion since the banking collapse has been secured, but the terms are not considered sustainable. Hjalmarsson says that before the collapse Reykjavik Energy was always able to finance its projects with cheaper foreign loans.

The use of domestic short-term loans is much more than initially predicted, so financing decisions are being made directly by the board.