News | Wednesday, 15 October 2008

Trading on Icelandic stock exchange resumes as IMF discusses finance deal

Trading on the new look Icelandic stock exchange began yesterday after a three-day closure, minus the Island’s three largest banks that helped take the economy to the brink of bankruptcy last week.
The blue-chip index, which now includes 15 companies, opened yesterday at 720, after a three-day closure as officials began talks in Moscow on a loan for the island’s beleaguered economy.
However, a spokesperson for the exchange said the value of the index, which was suspended at 3,000, had dropped because it had to be re-levelled following the removal of the country’s three biggest banks, all of which were nationalised last week. Following the re-levelling, shares were down 0.5 per cent.
The stock market had been suspended since Thursday after Iceland’s banking system collapsed. Yesterday was the first opportunity for people to get their money out of shares.
Iceland initially said it was asking Russia for a €4 billion loan after its Western allies in NATO turned down requests for help. But yesterday, no figures were being mentioned by the Russian Finance Ministry, which was hosting the talks with the visiting Icelandic officials.
On Monday, an International Monetary Fund (IMF) official who asked not to be identified told a news agency that the fund’s Executive Board had discussed Iceland’s official request for finance at the weekend but that no amount had been agreed.

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