Thomson Financial News
Russia: not yet enough reason to give Iceland loan
MOSCOW, Oct 17 (Reuters) - Russia does not yet have enough reason to give Iceland a loan, and has asked for more information on the NATO member's rescue plan for its banking system, a high-level government source said on Friday.
'We asked them to collect more information and present a rescue plan for the banking system,' the source said.
'But we have not refused them,' he added.
(Reporting by Toni Vorobyova, writing by Simon Shuster) Keywords: RUSSIA ICELAND/LOAN
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Russia has requested Iceland give them more details of the island nation's plan to rescue the banking sector and thus the entire national economy before granting them a loan.

Two weeks ago, Iceland's banking sector collapsed and was largely nationalised. Icelandic banks are in significantly more debt than the country can afford, and the nation may seek assistance from the International Monetary Fund. A decision on whether to involve the IMF is due within a week.

As for Russia, a senior Russian government source is reported by ''Reuters'' as having said "At the current moment, we do not yet have enough reasons to give them credit. We did not refuse. We are continuing the talks." ''Forbes'' quoted him as having also said "'We asked them to collect more information and present a rescue plan for the banking system."

Meanwhile, there is some optimism in Iceland over the economy. It is hoped by authorities that the lower exchange rate for the króna means that more tourists will be attracted. Bars and restaurants are also doing well. The manager of one bar explained: "Actually, when people get depressed they drink more."