Nordic backing for Iceland

Friday, 01 October 2010

"We are doing absolutely everything in our power to back up our Icelandic friends," the Danish Prime Minister Anders Fogh Rasmussen told international journalists on Tuesday.

Denmark, Norway and Sweden are offering Iceland support during its financial crisis. Back in May, they each entered into bilateral swap facility agreements with the Central Bank of Iceland giving it the right to acquire euro against Icelandic krona for up to an aggregate amount of €500 million.

So far, Iceland has exercised its options on €400 million from the national banks of Denmark and Norway, the Central Bank has informed the media.

"In times of uncertainty and turmoil the central banks have a responsibility to co-operate to attain their overall objectives. The swap agreement is aimed at supporting Sedlabanki Íslands in its task of safeguarding macroeconomic and financial stability," the head of the Swedish Riksbank Governor, Stefan Ingves, said when the agreement was made public on 16 May 2008.

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