EU offers Iceland a loan If they end dispute with UK

Posted 07/11/2008 - 22:01 by steveejeb

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2008-11-07 (All day)

(REYKJAVIK) - The European Union is willing to offer crisis-hit Iceland a loan for an unspecified amount, but it will likely take a while for loan to go through, Iceland's prime minister said Friday.
European Commission President Jose "Barroso sent me a letter where a (macro-financial assistance) loan was offered... I replied to his letter stating that on behalf of Iceland I would like to accept the offer," Geir Haarde told reporters in Reykjavik.

He said however that Barroso had made clear that "other matters had to be cleared" before the loan could go through. Haarde interpreted this to mean that a dispute with London over British assets frozen in stricken Icelandic banks would need to be settled first as well as a number of other issues.