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Text size [+][-]  Friday March 19 2010GLOBAL EDITION

Considered view
19 May 2008 16:21

Back from the cold

Context News

The Icelandic central bank has negotiated bilateral swap facilities to acquire up to E1.5bn against the Icelandic krona from the Danish, Norwegian and Swedish central banks. It may swap up to E500m with each of its Nordic neighbours if and when it is needed to ensure financial stability.

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Iceland’s new E1.5bn swap facility from its Nordic friends is a rare piece of good news for the beleaguered country. It dampens speculative pressure on its currency by signalling that Iceland will not be allowed to go under. That may eventually halt punishing interest rate hikes.

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