Copenhagen/Reykjavik - Danish Prime Minister Anders Fogh
Rasmussen on Tuesday indicated that Nordic neighbours of Iceland were
preparing to help the North Atlantic state financially.
Iceland has been hammered by the financial turmoil and its main
commercial banks have been nationalized by the state.
Speaking to foreign correspondents in Copenhagen, Rasmussen
declined to spell out details but said the neighbouring Nordic states
were prepared to offer 'more than just moral' help.
Denmark, Finland, Norway and Sweden along with Iceland belong to
the Nordic Council organization.
In Reykjavik, trading on the Icelandic stock exchange resumed
Tuesday with the exception of bank shares.
The operator NASDAQ OMX Iceland halted trading on Thursday owing
to what the operator called 'unusual market conditions.'
The Icelandic parliament approved special legislation a week ago
giving special powers to the Icelandic Financial Supervisory
Authority.
Over the weekend, representatives of Iceland, Britain and the
Netherlands discussed the repayment of foreign deposits frozen in the
three Icelandic banks Landsbanki, Glitnir and Kaupthing.
The Icelandic commercial banks have rapidly expanded their
operations in recent years, and run up liabilities at least five
times that of Iceland's GNP.
Iceland's Finance Minister Arni M Mathiesen was meanwhile reported
to be in Washington to discuss a possible emergency loan from the
International Monetary Fund (IMF).
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