In These New Times

If it were the USA lending this money I think the phrase “there’s no such thing as a free lunch” would be to the fore. However I’m am sure the Russians are far too discreet to use such a term.

Oct. 7 (Bloomberg) — Russia agreed to lend Iceland’s central bank 4 billion euros ($5.43 billion) to inject liquidity into the financial system, the bank said.

The loan will run over three to four years and cost as much as 50 basis points, or 0.5 of a percentage point, more than Libor.

Russia’s central bank declined to comment immediately.

Iceland’s Financial Supervisory Authority said today that it had taken control of Landsbanki Islands hf, the country’s second-largest lender. Kaupthing Bank hf, the largest bank, said the central bank had agreed to lend it 500 million euros.