Today, Iceland’s Prime Minister and the other Prime Ministers of the Nordic Council countries announced that Iceland has applied for economic support from the four other Nordic central banks. The Nordic Council (comprising Norway, Sweden, Finland, Denmark, and Iceland) discussed the international financial crisis and the situation in Iceland. The Nordic Council agreed “to establish a high-level committee to monitor implementation of the IMF’s stabilization program and to discuss and coordinate measures to assist Iceland in recovering from the serious situation in which that country now finds itself.” After Iceland’s Prime Minister briefed the Nordic Council on the latest developments in Iceland, “[t]hey expressed their solidarity with Iceland, saying that the other Nordic countries have a special responsibility to collectively assist a neighboring country in crisis.” The Nordic Council concluded by saying, “in accordance with the IMF’s conditions, we support Iceland’s efforts to restructure its economy and return to a path of sustainable growth through substantial financial sector adjustment, a commitment to sustainable development of foreign debt, and credible long-term financial policy.”

A report on the Nordic Council meeting confirmed the “possibility of combining an aid package from IMF with aid from the Nordic countries and possibly also a very controversial loan from Russia.” No formal agreements have been entered into at this time.