|David Oddsson asked Fed for a billion dollars|
|Written by icenews.is|
|Saturday, 15 January 2011 19:12|
Iceland’s former central bank governor sent Timothy Geithner, governor of the US Federal Reserve, a letter on 24th October 2008 requesting a billion dollar loan.
The letter, which has been leaked on Wikileaks, begins with the words “Dear Tim”.
Oddsson requests a currency swap agreement in the letter due to the fact that all credit lines to Iceland had frozen after the banking collapse. It is obvious from the letter that such requests had been made and rejected in the past — most recently just the month before.
Leaked US embassy documents reveal that Iceland’s Ministry of Foreign Affairs had not been consulted about Oddsson’s letter and was not immediately given a copy, despite knowing of the letter’s existence.
The then American ambassador to Reykjavik, Carol Van Voorst, sent a long message to the USA in which she points out five strong reasons why America should grant the billion dollar loan, as can be seen on Wikileaks.
Iceland is strategically positioned for security purposes and will be very important in the future for its possible oil and gas, and also its “second-to-none” geothermal energy know-how. As the Arctic ice melts, it will also be increasingly important to shipping.
She explained that the Russians and the Chinese were both in the frame to provide a bailout and that it would be in the USA’s best interest to get there first and be the sort of good friend and ally that Iceland would remember in the future.
Friday afternoon, October 24, 2008, the Government of Iceland
I refer to the discussions which we had towards the end of September
I hereby request participation from the Federal Reserve Bank in the
I look forward to your prompt and favourable consideration of our
|Last Updated on Friday, 18 November 2011 02:12|