HELSINKI, Jan 8 (Reuters) - Finland said on Friday that its loan to Iceland was contingent on the cash-strapped nation adhering to commitments it has made to international lenders.
"The condition for the loan is that Iceland follows its international commitments," the Finance Ministry said in a statement. "Finland will coordinate Iceland's loan matter in close cooperation with the other Nordic countries."
Finland has pledged 350 million euros ($500 million) as part of a Nordic loan package for the island nation, whose economy was severely damaged when its banking system collapsed in 2008.
Iceland President Olafur Grimsson's refusal to sign a bill on repaying more than $5 billion to Britain and the Netherlands has threatened to hold up international aid.