“We have not received the kind of support that we were requesting from our friends,” said Geir Haarde, prime minister. “So in a situation like that one has to look for new friends.”
In spite of the new friendship, Mr Haarde said it did not extend to military co-operation, refuting the suggestion that Russia might be given access to an airbase vacated by the US air force in 2006. “We are a founder member of Nato,” noted an official, “categorically denying” any such deal.
There was confusion over the status of the Russian loan, with the central bank first saying it had secured €4bn ($5.4bn, £3bn) on a four-year deal, at between 30 and 50 basis points above the London interbank offered rate, before acknowledging that the pact had yet to be finalised.
Alexei Kudrin, Russia’s finance minister, confirmed Russia had received a request from the Icelandic government for credit. “We will examine it,” he said. ”Iceland is well known as a country with tough budgetary discipline and a high rating of reliability. We see such an application positively.” More...
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