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Posts Tagged ‘bankrupt iceland’

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Iceland, “the little Cuba of the north”, grateful for Russian support

Posted by seumasach on October 8, 2008

`Iceland is turning into the little Cuba of the north, said Ragnar Hannes Gudmundsson, 38, who has worked at Kaupthing Bank hf, Iceland’s largest lender. “The Soviet Union supported Cuba decades ago and now they are saving us.

Oct. 8 (Bloomberg) — For Russian Prime Minister Vladimir Putin, the financial crisis that is costing his government $200 billion may also provide an unexpected opportunity to expand his country’s influence.

Rejected by its Western allies, Iceland yesterday said it was in talks to borrow 4 billion euros ($5.4 billion) from Russia to shore up its financial system. It would be the first time Russia has extended financial assistance to a NATO country.
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Iceland crown falls vs euro after PM fails to reassure

Posted by seumasach on October 8, 2008

Reporting by Carolyn Cohn and Natsuko Waki

Forbes

LONDON, Oct 7 (Reuters) – The Icelandic crown fell against the euro on Tuesday after comments from Icelandic Prime Minister Geir Haarde failed to reassure investors.

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Iceland c.bank says pegs crown to Euro

Posted by seumasach on October 8, 2008

Reuters

STOCKHOLM/REYKJAVIK, Oct 7 (Reuters) – Iceland’s central bank said on Tuesday it would peg the island’s crown to a basket of currencies at a level of 131 per euro effective immediately, confirming earlier reports.

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Iceland unions push government to join EU

Posted by seumasach on October 7, 2008

Can anyone think of another offshore financial speculator economy whose currency has become very vulnerable against the Euro?

Leigh Philips

EU Observer

6th October, 2008

Iceland’s trade unions want the country to join the European Union in return for help in an economic rescue plan, as the island state’s government holds emergency talks to shore up its teetering economy.

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Iceland should turn to the IMF, not Russia

Posted by seumasach on October 7, 2008

A E4bn loan from Russia might make financial sense – although Russians might think otherwise given Moscow’s shaky finances. But it would create strategic ructions. Iceland is a NATO member, but Russia would want something in return for a loan equal to almost a third of the tiny state’s GDP. The US would fret this could eventually mean a Russian military presence in the North Atlantic.

These Telegraph fuddie-duddies, like the  ensemble of British punditry, have yet to grasp that the game is up, that support is coming from the East and that it will come with a geopolitical price. Despite British and US pressure, Iceland rejected IMF “help”.

George Hay

Telegraph

7th October, 2008

It has pegged the krona to the euro at 131 – the rate had swooned towards 200 on Monday – and is searching for foreign reserves. That’s a good idea. Less good is the idea to pass the cap to Russia.

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