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Iceland Expects Sweden’s Support

Published lördag 23 januari 2010 kl 13.53
Iceland's and Sweden's FMs Össur Skarphédinsson and Carl Bildt

Icelandic Foreign Minister Össur Skarphédinsson has expressed the expectation that Sweden will support its Nordic neighbor in the future – defying an earlier statement by Swedish Prime Minister Fredrik Reinfeldt that Sweden will only help Iceland to get out of its financial crisis if the open questions concerning the Icesave-loans are sorted out.

Speaking to Swedish Radio, Skarphédinsson said he hopes his government will be able to re-negotiate the terms of the Icesave-loans with the Netherlands and Britain before a referendum on the question will be carried out on 6 March. According to the Icesave-bill, Iceland is obliged to compensate Dutch and British savers who lost their money during the breakdown of the Icelandic economy. But Icelandic voters could turn down the compensation in the referendum in March. This has prompted reactions from Iceland’s Nordic neighbors who all insist Iceland stand by its earlier commitment.

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