Identifier
Created
Classification
Origin
08OSLO597
2008-11-04 11:24:00
UNCLASSIFIED
Embassy Oslo
Cable title:
LENDIN' COUSINS: NORWAY SUPPORTS CASH-STRAPPED
how-toVZCZCXYZ0006 OO RUEHWEB DE RUEHNY #0597 3091124 ZNR UUUUU ZZH O 041124Z NOV 08 FM AMEMBASSY OSLO TO RUEHC/SECSTATE WASHDC IMMEDIATE 7137 INFO RUEHCP/AMEMBASSY COPENHAGEN PRIORITY 2481 RUEHHE/AMEMBASSY HELSINKI PRIORITY 8037 RUEHRK/AMEMBASSY REYKJAVIK PRIORITY 0857 RUEHSM/AMEMBASSY STOCKHOLM PRIORITY 3342
UNCLAS OSLO 000597
SIPDIS
EUR/NB (RGILCHRIST)
E.O. 12958: N/A
TAGS: ECON EPET ENRG EINV NO
SUBJECT: LENDIN' COUSINS: NORWAY SUPPORTS CASH-STRAPPED
ICELAND
REF: OSLO 567
UNCLAS OSLO 000597
SIPDIS
EUR/NB (RGILCHRIST)
E.O. 12958: N/A
TAGS: ECON EPET ENRG EINV NO
SUBJECT: LENDIN' COUSINS: NORWAY SUPPORTS CASH-STRAPPED
ICELAND
REF: OSLO 567
1. Summary. On November 3, Norwegian FM Jonas Gahr Stoere
met with Icelandic PM Geir Haarde and FM Ingibjorg
Gisladottir in Reykyavik. Pending parliamentary approval,
the GON will extend the duration of its existing 500 million
euro revolving loan (Reftel) until late 2009. A second 500
million euro loan will be made, payable by 2013. The GON and
Iceland also signed an oil and gas agreement for cooperation
on Iceland's Continental Shelf (ICS),while Stoere called for
Nordic cooperation in Russia relations. End Summary.
It's in the Family, Speaking the Language of Money
-------------- --------------
2. Norwegian media reports that the extension of the GON's
existing loan and the new 5 year loan, comprising a combined
lending amount of 1 billion euros, will pass Parliament.
Norwegian parliamentarians across the political spectrum
solidly support the measure. One Christian Democrat
parliamentarian, questioned as to the likelihood of the bill
passing, stated that "blood is thicker than water." Media
reports stress that it is Norway's ethical duty to help
Iceland, and doubt that any money loaned to their neighbor
will be lost. Norwegian popular support for Iceland extends
beyond kinship. Icelandic PM Haarde is a fluent Norwegian
speaker, further warming up the Norwegians to the Icelandic
cause.
A Kroner Saved is a Kroner Earned
--------------
3. Norwegian media has been speculating for several weeks as
to why the GON did not step in more quickly with aid to
Iceland. The GON and other Scandinavian countries were
apparently awaiting completion of the IMF's 6 billion USD
stabilization package before moving forward. Under that now
final Plan, the IMF will directly provide 2 billion USD, with
countries providing the unmet need. The Nordic Council of
Ministers, led by Sweden, will coordinate management of
Scandinavian assistance, including the GON's two loans.
Brotherly Cooperation: Energy, Russia
--------------
4. The GON and Iceland signed an oil and gas agreement,
building upon a 1981 MOU which grants the GON a 25% stake in
ICS development. Iceland is planning to open up portions of
the ICS for exploration.
5. Stoere's trip included speaking at the University of
Reykjavik, visiting the Norwegian Labor Party's Icelandic
equivalent, and an interview with the Icelandic daily
Morganbladit. During that interview, Stoere called for
Nordic cooperation in dealings with Russia, referencing the
need for solid, predictable and useful discussions on issues
such as polar cooperation.
WHITNEY
SIPDIS
EUR/NB (RGILCHRIST)
E.O. 12958: N/A
TAGS: ECON EPET ENRG EINV NO
SUBJECT: LENDIN' COUSINS: NORWAY SUPPORTS CASH-STRAPPED
ICELAND
REF: OSLO 567
1. Summary. On November 3, Norwegian FM Jonas Gahr Stoere
met with Icelandic PM Geir Haarde and FM Ingibjorg
Gisladottir in Reykyavik. Pending parliamentary approval,
the GON will extend the duration of its existing 500 million
euro revolving loan (Reftel) until late 2009. A second 500
million euro loan will be made, payable by 2013. The GON and
Iceland also signed an oil and gas agreement for cooperation
on Iceland's Continental Shelf (ICS),while Stoere called for
Nordic cooperation in Russia relations. End Summary.
It's in the Family, Speaking the Language of Money
-------------- --------------
2. Norwegian media reports that the extension of the GON's
existing loan and the new 5 year loan, comprising a combined
lending amount of 1 billion euros, will pass Parliament.
Norwegian parliamentarians across the political spectrum
solidly support the measure. One Christian Democrat
parliamentarian, questioned as to the likelihood of the bill
passing, stated that "blood is thicker than water." Media
reports stress that it is Norway's ethical duty to help
Iceland, and doubt that any money loaned to their neighbor
will be lost. Norwegian popular support for Iceland extends
beyond kinship. Icelandic PM Haarde is a fluent Norwegian
speaker, further warming up the Norwegians to the Icelandic
cause.
A Kroner Saved is a Kroner Earned
--------------
3. Norwegian media has been speculating for several weeks as
to why the GON did not step in more quickly with aid to
Iceland. The GON and other Scandinavian countries were
apparently awaiting completion of the IMF's 6 billion USD
stabilization package before moving forward. Under that now
final Plan, the IMF will directly provide 2 billion USD, with
countries providing the unmet need. The Nordic Council of
Ministers, led by Sweden, will coordinate management of
Scandinavian assistance, including the GON's two loans.
Brotherly Cooperation: Energy, Russia
--------------
4. The GON and Iceland signed an oil and gas agreement,
building upon a 1981 MOU which grants the GON a 25% stake in
ICS development. Iceland is planning to open up portions of
the ICS for exploration.
5. Stoere's trip included speaking at the University of
Reykjavik, visiting the Norwegian Labor Party's Icelandic
equivalent, and an interview with the Icelandic daily
Morganbladit. During that interview, Stoere called for
Nordic cooperation in dealings with Russia, referencing the
need for solid, predictable and useful discussions on issues
such as polar cooperation.
WHITNEY