Russia Denies Loan to Iceland - The Reykjavik Grapevine

Russia Denies Loan to Iceland

Published October 15, 2009

According to Reuters, Russia has denied Iceland’s request for a 500 million USD loan.
Citing their own financial troubles in having to make budget cuts, a statement from the Russian Finance Ministry reads in part, “Based on the results of considering the Icelandic government’s request for financial aid … of up to $500 million, the Russian government took the decision to refrain from giving the requested funds. The decision was dictated by the necessity to restrain the growth of state spending in the conditions of a budget deficit.”
Icelandic Finance Minister Steingrímur J. Sigfússon told reporters that the news doesn’t surprise him, as he more or less got impression the loan would be rejected when he was in Istanbul last week for an IMF conference. “This does not make much difference,” he added. “We have secured the loans we need and are, in fact, reevaluating our needs”

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