According To The Guardian...
Reykjavik will soon be handed a $6bn (£3.5bn), IMF-led rescue package to help it pull through the banking crisis that is threatening to overwhelm its economy, reports suggested yesterday.
The island, which has nationalised its three biggest banks and cut interest rates by 3.5 percentage points, has been in talks for a week. Yesterday, the Financial Times reported the IMF would probably contribute $1bn, with further support from Scandinavia and Japan.
The FT said it understood an official request for IMF help would be sent by today. An IMF spokesman said fund staff had "been in Reykjavik for two weeks", but he could not confirm the reports. The Iceland government would not comment. However, Icelandic radio said an announcement was expected shortly.
Last week, the country drew on swap facilities with Denmark and Norway, tapping £150m from each to kickstart currency markets. Britain has offered a £100m loan to help it repay UK depositors in Landsbanki, one of the three nationalised banks.
France
Paris last night said it would inject €10.5bn (£8bn) into six leading banks "by the end of the year" to prevent the economy plunging into prolonged recession. It denied it was a crisis measure. Christine Lagarde, the finance minister, said they would offer €3bn to Crédit Agricole, €2.5bn to BNP and €1.7bn to Société Générale to help them "correctly" finance the economy. Christian Noyer, governor of the Bank of France, insisted the banks had sufficient capital reserves to resist crisis.
Ukraine
An IMF delegation in Kiev is in talks about a $10bn-$15bn loan. The Ukrainian president, Viktor Yushchenko, yesterday proposed creating a state stabilisation fund to buy key enterprises and banks in financial crisis. "It is not ruled out that resources from this fund could be used to buy enterprises deemed critical to the economy, including commercial banks," he said.
Sweden
The country has launched a 1.5 trillion kronor (£116bn) fund to promote inter-bank lending and a 15bn kronor capital injection scheme. Mats Odell, the country's markets minister, said the Swedish banking system was "well-prepared" but increasingly affected by global financial turmoil.
Germany
The state-owned regional bank Bayern LB has indicated it will be among the first to apply for unspecified billions from a €500bn (£388bn) rescue programme and other regional banks are expected to follow. Commerzbank, the country's second-largest commercial bank, was considering its options, but Deutsche, the biggest, has been criticised for refusing to join.
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Reykjavik will soon be handed a $6bn (£3.5bn), IMF-led rescue package to help it pull through the banking crisis that is threatening to overwhelm its economy, reports suggested yesterday.
The island, which has nationalised its three biggest banks and cut interest rates by 3.5 percentage points, has been in talks for a week. Yesterday, the Financial Times reported the IMF would probably contribute $1bn, with further support from Scandinavia and Japan.
The FT said it understood an official request for IMF help would be sent by today. An IMF spokesman said fund staff had "been in Reykjavik for two weeks", but he could not confirm the reports. The Iceland government would not comment. However, Icelandic radio said an announcement was expected shortly.
Last week, the country drew on swap facilities with Denmark and Norway, tapping £150m from each to kickstart currency markets. Britain has offered a £100m loan to help it repay UK depositors in Landsbanki, one of the three nationalised banks.
France
Paris last night said it would inject €10.5bn (£8bn) into six leading banks "by the end of the year" to prevent the economy plunging into prolonged recession. It denied it was a crisis measure. Christine Lagarde, the finance minister, said they would offer €3bn to Crédit Agricole, €2.5bn to BNP and €1.7bn to Société Générale to help them "correctly" finance the economy. Christian Noyer, governor of the Bank of France, insisted the banks had sufficient capital reserves to resist crisis.
Ukraine
An IMF delegation in Kiev is in talks about a $10bn-$15bn loan. The Ukrainian president, Viktor Yushchenko, yesterday proposed creating a state stabilisation fund to buy key enterprises and banks in financial crisis. "It is not ruled out that resources from this fund could be used to buy enterprises deemed critical to the economy, including commercial banks," he said.
Sweden
The country has launched a 1.5 trillion kronor (£116bn) fund to promote inter-bank lending and a 15bn kronor capital injection scheme. Mats Odell, the country's markets minister, said the Swedish banking system was "well-prepared" but increasingly affected by global financial turmoil.
Germany
The state-owned regional bank Bayern LB has indicated it will be among the first to apply for unspecified billions from a €500bn (£388bn) rescue programme and other regional banks are expected to follow. Commerzbank, the country's second-largest commercial bank, was considering its options, but Deutsche, the biggest, has been criticised for refusing to join.
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