Norway’s support for Iceland remains firm

The Norwegian news site ABC Nyheter today reports that the Norwegian government has “changed its mind” about supporting Iceland in the current situation. This is not correct. – Norway will honour its commitments to Iceland through the loans that have been made available, says finance minister Sigbjørn Johnsen.

- The Icesave-agreements between Iceland, the Netherlands and the United Kingdom are not a condition for continued disbursement of the Norwegian loan to Iceland. However, a condition for continued disbursement is approval of the next review of Iceland’s stabilisation programme in the IMF Executive Board. It also a condition that Iceland honours its deposit guarantee insurance commitments in line with the EEA agreement, and the Icelandic government has said it remains committed to doing so, says Mr. Johnsen. In this context, a solution of the Icesave issue is important.

- We would welcome a development that leads to broad support in the IMF Board to approve the upcoming review of Iceland’s IMF programme, concludes Mr. Johnsen.