This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7694785.stm
The article has changed 10 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Iceland's interest rate up to 18% | Iceland's interest rate up to 18% |
| (20 minutes later) | |
| Iceland's central bank has raised its key interest rate to 18% from 12% as it battles against financial collapse. | Iceland's central bank has raised its key interest rate to 18% from 12% as it battles against financial collapse. |
| The rise comes less than two weeks after Iceland cut rates from 15.5%. | The rise comes less than two weeks after Iceland cut rates from 15.5%. |
| The central bank governor said the increase was part of its agreement with the International Monetary Fund, from which it borrowed $2bn (£1.3bn). | |
| Iceland's prime minister said the country needed another $4bn in loans and had approached the European Central Bank and the US Federal Reserve. | Iceland's prime minister said the country needed another $4bn in loans and had approached the European Central Bank and the US Federal Reserve. |
| Central bank governor David Oddsson said that he hoped the rise in rates would only last for a short time and added that the move was designed to stabilise the currency. | Central bank governor David Oddsson said that he hoped the rise in rates would only last for a short time and added that the move was designed to stabilise the currency. |
| "With the collapse of three banks and the harsh external measures that followed, Iceland's foreign exchange market became paralysed," the bank said in a statement. | |
| The government has imposed strict foreign exchange restrictions on the trading of its currency. | |
| The Icelandic crown traded internationally for the first time for a week on Tuesday, with the value slumping to 240 to the euro from Monday's official fix of 152. | |
| Nordic summit | Nordic summit |
| Iceland has been struggling since it was forced to take over its three biggest banks, which had been hit by the credit crunch. | Iceland has been struggling since it was forced to take over its three biggest banks, which had been hit by the credit crunch. |
| The prime minister made his comments about the need to raise an extra $4bn on the sidelines of a meeting with other Nordic countries. | The prime minister made his comments about the need to raise an extra $4bn on the sidelines of a meeting with other Nordic countries. |
| "It's not a precise number, it's not a scientific number but we are looking in that neighbourhood," Geir Haarde said. | "It's not a precise number, it's not a scientific number but we are looking in that neighbourhood," Geir Haarde said. |
| Mr Haarde would not say how much of the additional money he was hoping to borrow from the other Nordic countries: Sweden, Finland, Norway and Denmark. | Mr Haarde would not say how much of the additional money he was hoping to borrow from the other Nordic countries: Sweden, Finland, Norway and Denmark. |
| "I do not want to put pressure on them," he said. | "I do not want to put pressure on them," he said. |