My finance view

REYKJAVIK–Iceland has sought to reassure international investors caught in its banking meltdown, saying it aimed to meet its obligations despite the turmoil that has ravaged a once-vibrant financial sector.

British officials were due to hold talks today with Icelandic authorities on dealing with the estimated £1 billion of British deposits trapped in Iceland’s collapsed banks.

"The Icelandic government of course intends to honour its obligations," Prime Minister Geir Haarde told a news conference in Reykjavik, without giving details.

The Dutch government accused Iceland of insufficiently supervising Icelandic bank Landsbanki’s Icesave business in the Netherlands.

A deal to sell most of Landsbanki’s overseas corporate finance and brokerage business to Iceland’s Straumur-Burdaras investment bank fell through yesterday.

Iceland also said it will start negotiations with Russia on Tuesday to secure a four billion euro, $6.3 billion (Canadian), loan.

Source