Norway and Iceland begin bailout discussions

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2008-10-23 (All day)

.... Britain, where tens of thousands of people had savings accounts with the collapsed Icelandic banks, is also in discussions with Icelandic authorities about a loan, reportedly worth as much as 3 billion pounds (US$2.4 billion).

"The aim of these discussions is to agree a mechanism where by the Icelandic government can honor its obligations to U.K. retail depositors and ensure the fair treatment of U.K. creditors," the Treasury said in a statement on Wednesday.

An IMF loan to Iceland would be the first by the body to a Western nation since 1976.