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STOCKHOLM, Nov 20, 2008 (AFP) - Four Nordic countries are to lend Iceland 2.5 billion dollars to help it cope with an acute economic crisis, finance ministers from Denmark, Finland, Norway and Sweden said in a joint statement Thursday.
The Nordic loan, worth 2.0 billion euros, would complement a 2.1-billion-dollar credit for Iceland approved Wednesday by the International Monetary Fund.
"Within the framework of the IMF-supported programme, the Nordic countries -- Denmark, Finland, Norway and Sweden -- have worked closely together and jointly decided to supplement the IMF financing of 2.1 billion dollars with additional loans of 2.5 billion dollars," the ministerial statement said.
The Icelandic economy, which is highly dependent on the country's financial system, was knocked flat by the international credit crisis.
The three biggest banks were nationalised in early October, with the turmoil threatening to cost Iceland up to an estimated 85 percent of gross domestic product (GDP).
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