Interesting that Russia can step in where the US cannot now… the balance of power is shifting.
I would really laugh if Russia starts stickinjg conditions on the loan just to spite NATO - ie Iceland must withdraw from NATO and agree to Russian forces being able to set up bases there…
The Associated Press: Iceland announces Russian loan, nationalizes bank
REYKJAVIK, Iceland (AP) — Iceland nationalized its second-largest bank Tuesday under emergency legislation and said it had negotiated a 4 billion-euro ($5.4 billion) loan from Russia to shore up the nation’s finances amid a full-blown financial crisis.
A Russian official, however, said a loan had not been agreed upon.
The bailout of Landsbanki came a day after trading in shares of major banks was suspended, the Icelandic krona lost a quarter of its value against the euro and the government rushed through emergency legislation giving it sweeping powers to deal with the financial meltdown.
“As declared by the government, all domestic deposits are fully guaranteed,” the Financial Supervisory Authority said. “Landsbanki’s domestic branches, call centers, cash machines (ATMs) and Internet operations will be open for business as usual.”
Within hours of the government move, the Samson holding company, which held a 41 percent stake in Landsbanki, went to the district court seeking temporary protection from its creditors.
Iceland’s central bank said in a statement that it had been informed by the Russian ambassador, Victor I. Tatarintsev, that Iceland would be given a loan of 4 billion euros ($5.4 billion), and that this had been confirmed by Prime Minister Vladimir Putin.