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Iceland to hold news conference,deposit feud in focus

Published 11/14/2008, 07:50 AM
Updated 11/14/2008, 07:54 AM
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REYKJAVIK, Nov 14 (Reuters) - Iceland's government planned to hold a news conference at 1600 GMT on Friday, amid speculation a resolution may be close in conflicts with Britain and the Netherlands over deposits in failed bank Landsbanki.

A spokesman for the prime minister's office said the news conference would involve PM Geir Haarde and Foreign Minister Ingibjorg Solrun Gisladottir, but offered no further details.

The International Monetary Fund and the European Union have both indicated they could be willing to stump up cash for the crisis-hit country, but that it must solve conflicts over deposits in Landsbanki's so-called Icesave accounts.

The IMF has declined to comment on delays to a decision on a provisional $2 billion loan. But on Thursday, a fund spokesman said the Washington-based lender was discussing a "number of issues" raised by potential creditors, including foreign deposits. [nN13385792] "We hope that we're reaching a solution to the dispute with the UK and the Netherlands. This is one of the most difficult international disputes we have ever been in," Icelandic foreign minister Gisladottir told journalists after a cabinet meeting on Friday, according to the Morgunbladid newspaper's Web site.

Three of Iceland's largest banks were taken over by the government last month.

(Reporting by Omar Valdimarsson in Reykjavik via the Stockholm Newsroom; Editing by Ron Askew)

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