Nordic banks step in to back Iceland

The Central Banks of Sweden, Norway and Denmark, have entered into euro/Icelandic króna bilateral swap facility agreements with the Central Bank of Iceland, May 2008.

Three Nordic central banks unveiled an unprecedented €1.5bn emergency funding package on the 16 May 2008 to support Iceland’s troubled currency and stabilise its banking system as the tiny north Atlantic nation tries to fend off the effects of the global credit crisis.

Iceland: Central Bank of Iceland: Press Release, 16.5.08: The Central Bank of Iceland concludes swap facility arrangements http://www.sedlabanki.is/?PageID=287&NewsID=1766

ESO: Background information http://www.europeansources.info/record/cool-under-fire-iceland-takes-the-fight-back-to-finance/

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