Iceland talks to Russia about a 4bn euro loan

Talks are underway in Moscow on the possibility of Russia lending Iceland four billion euros to help it survive its financial crisis. Russian could loan the money over three to four years, to be paid back at a higher than normal interest rate.

As Iceland’s government attempts to avoid bankruptcy, its people are panic buying.

Many shop owners say they are unable to get their hands on foreign currency to import goods. Certain supplies could run out in weeks. Prices have been rising all week.

Some banks are now refusing to trade the Icelandic Krona and foreign suppliers are demanding payment in advance.

Iceland’s stock exchange is trading again but has fallen 76% today.