UK plans £3bn loan for Iceland

Article reports that the UK and Iceland are hoping to agree a loan of up to £3bn in the last week of October 2008 to cover British depositors in Icesave, the online banking unit of Landsbanki, the collapsed Icelandic bank. The loan from the UK to Iceland will provide a first step towards unfreezing the deposits of approximately 300,000 UK customers who have been unable to withdraw money after Landsbanki collapsed earlier in October 2008. Any agreement will also ease tensions significantly between the UK and Iceland after the collapse of its banking system triggered the most damaging diplomatic spat since the cod wars of the 1970s.

ESO: Background information: Iceland to announce $6bn IMF-led rescue http://www.europeansources.info/record/iceland-to-announce-6bn-imf-led-rescue/

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