Russia and Iceland fail to achieve loan agreement

roublesThe 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. 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.

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