Financial Times FT.com

Iceland seeks loan to shore up its currency

By Robert Anderson in Stockholm and Peter Garnham in London

Published: October 4 2008 02:22 | Last updated: October 4 2008 02:22

Iceland was scrambling to help its banks secure access to foreign currency on Friday as investor nervousness drove the krona to new lows.

Confidence in its highly leveraged banking system has plunged since Glitnir, the third-largest bank, was nationalised on Monday after it hit liquidity problems.

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