A delegation from Iceland was in Moscow a year ago for a series of meetings to agree the terms for a loan that would allow Iceland's government to shore up its shaky national currency, the krona, which collapsed after the country was forced to nationalize its three main banks after they amassed debts of over $60 billion.
With the sub-Arctic island's population of only 320,000, the banks' debt last year was equivalent to $187,000 per person. With debts some 12 times larger than the national economy, which is expected to contract by 10% in 2009, Iceland's Central Bank said that Russia's possible loan of some $500 million would bolster Iceland's foreign exchange reserves, strengthening the stability of the krona in the face of the financial crisis.
(Fonte: Ria Novosti)
