Oct. 14 (Bloomberg) -- Iceland's delegation started talks in Moscow today to secure an emergency loan of as much as 4 billion euros ($5.47 billion) from Russia after the island's three largest banks collapsed.
A six-person delegation lead by Sigurdur Sturla Palsson, the head of the central bank's international department, flew to the Russian capital yesterday, a spokeswoman for Iceland's Moscow Embassy said. The talks may last a number of days, said an official at Russia's Finance Ministry.
Iceland was the first NATO member to appeal for Russian aid after the global financial crisis led to the collapse of Kaupthing Bank hf, Landsbanki Island hf and Glitnir Bank hf with debts equivalent to as much as 12 times the size of the Nordic country's economy.
``This is a wake-up call for the U.S.,'' Vladimir Matias, managing partner at Asset Capital Partners in Moscow, told Bloomberg Television. ``It needs now to decide what do to, to intervene and possibly help Iceland and build a political bridge before the Russians.''
While Russia's stock markets suffered their worst rout since the 1998 default, the world's largest energy exporter has weathered the global credit crunch with $546 billion in currency reserves, the third largest after China and Japan.
No Support
Icelandic Prime Minister Geir Haarde complained last week that his country hadn't received financial support from its allies in Europe and North America.
Iceland may also become the first western nation to seek aid from the International Monetary Fund since 1976. Loans from the IMF and Russia ``are not mutually exclusive,'' Haarde said on Oct. 9.
Icelandic Foreign Ministry spokeswoman Urdur Gunnarsdottir, speaking in a phone interview from Reykjavik, said that talks with Russia would last at least two days, adding that discussions with the IMF are continuing.
Russian President Dmitry Medvedev's top economic adviser, Arkady Dvorkovich, said last week that Russia wanted to help stabilize Iceland.
``Global turmoil affects Russia a lot,'' Dvorkovich said in an interview with Bloomberg Television. ``We are part of Europe and we want Europe to be stable.''
A six-person delegation lead by Sigurdur Sturla Palsson, the head of the central bank's international department, flew to the Russian capital yesterday, a spokeswoman for Iceland's Moscow Embassy said. The talks may last a number of days, said an official at Russia's Finance Ministry.
Iceland was the first NATO member to appeal for Russian aid after the global financial crisis led to the collapse of Kaupthing Bank hf, Landsbanki Island hf and Glitnir Bank hf with debts equivalent to as much as 12 times the size of the Nordic country's economy.
``This is a wake-up call for the U.S.,'' Vladimir Matias, managing partner at Asset Capital Partners in Moscow, told Bloomberg Television. ``It needs now to decide what do to, to intervene and possibly help Iceland and build a political bridge before the Russians.''
While Russia's stock markets suffered their worst rout since the 1998 default, the world's largest energy exporter has weathered the global credit crunch with $546 billion in currency reserves, the third largest after China and Japan.
No Support
Icelandic Prime Minister Geir Haarde complained last week that his country hadn't received financial support from its allies in Europe and North America.
Iceland may also become the first western nation to seek aid from the International Monetary Fund since 1976. Loans from the IMF and Russia ``are not mutually exclusive,'' Haarde said on Oct. 9.
Icelandic Foreign Ministry spokeswoman Urdur Gunnarsdottir, speaking in a phone interview from Reykjavik, said that talks with Russia would last at least two days, adding that discussions with the IMF are continuing.
Russian President Dmitry Medvedev's top economic adviser, Arkady Dvorkovich, said last week that Russia wanted to help stabilize Iceland.
``Global turmoil affects Russia a lot,'' Dvorkovich said in an interview with Bloomberg Television. ``We are part of Europe and we want Europe to be stable.''
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