Fredrik Reinfeldt

Reinfeldt Repeats Tough Stand on Iceland

Sweden’s Prime Minister Fredrik Reinfeldt has ruled out that the Nordic countries would provide more money to Iceland before the International Monetary Fund has conducted a review of an aid programme to the cash-strapped nation.

The IMF is to carry out the review of Iceland's economic programme by the end of January, but Icelandic officials say it could be held up by the unresolved "Icesave" issue. Iceland has to repay money to Britain and the Netherlands for bank deposits lost in a financial meltdown. Iceland's problems now increase with Swedish Prime Minister Fredrik Reinfeldt ruling out further economic support by Sweden, Norway and Finland. In Stockholm Reinfeldt told reporters that the next tranche of 1.8 billion euros in Nordic aid would be paid only after the IMF review.

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