Financial Times FT.com

Lehman Brothers

Iceland in talks to prevent bank meltdown

By Tom Braithwaite in Reykjavik and Robert Anderson in Stockholm

Published: October 5 2008 19:32 | Last updated: October 5 2008 19:32

Iceland’s prime minister and central bankers were holding emergency talks with pension funds and banks on Sunday as the country looked overseas for funding to shore up its crisis-ridden financial system.

Pension funds were being urged to repatriate foreign assets, while the Central Bank was looking to bolster its foreign exchange reserves. The government may on Monday announce plans for several billion euros to be injected into the Central Bank, people with knowledge of the talks said, although others warned there was no certainty that a deal would be reached or that it would be sufficient to reassure nervous markets.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this