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Prime Minister's Office

The Faroe Islands Come to Iceland's Aid

The Faroe Islands have offered Iceland a loan of DKK 300 million. The offer was put forward at a meeting in Helsinki, Finland, where Icelandic, Faroese and other Nordic politicians and officials are attending the Nordic Council Session.

At a meeting between the Prime Ministers of Iceland and the Faroe Islands yesterday afternoon, the Prime Minister of the Faroe Islands, Kaj Leo Johannsen, announced a unanimous descision of the political parties to help Iceland with a DKK 300 million loan. The Faroe Islands, with a population of approx. 48,500 and a GDP of 1,113 million Euro, has close historical and cultural ties with Iceland.

Iceland’s Prime Minister Geir H. Haarde:
"The support from our neighbours and friends is invaluable in these challenging times. We need help to revive the economy after the sudden failure of our country's banks, and we truly appreciate it when we see our friends doing what they can to help us.”

Prime minister Kaj Leo Johannsen

“Iceland is experiencing difficult times, and for us it is important to help friends in need. Our two nations have a close relationship and we want to express our support with this contribution.”

For more information:

Greta Ingthórsdóttir, Political Advisor to the Prime Minister, e-mail: [email protected]. For more facts and information from the Government, please visit www.government.is


Note to editors:

Additional press and media service:

To ensure transparency and satisfactory media service, a press office function has been established as part of the effort outlined above. The aim will be to ensure continued service to the domestic and international press. The mail address to the projects going forward will be: [email protected] for press photos: [email protected]. For more facts and information from the Government, please visit www.government.is

Background on Prime Minister Geir H. Haarde
For more facts about Geir H. Haarde, please see: /minister/cv

Background about Iceland
For more background and facts about Iceland - please visit www.government.is and www.icetourist.is/displayer.asp?cat_id=269. For general information about Iceland, please contact the Iceland Chamber of Commerce, www.vi.is. The contact person is Finnur Oddson, Managing Director, e-mail: [email protected].

Icelandin short:
Iceland is an island of 103.000 km2 (39,756 sq.miles), with only 313.000 inhabitants, is about one-third larger than Scotland or Ireland. Its highest peak, Hvannadalshnjúkur, rises to 2.119 m and over 11 per cent of the country is covered by glaciers, including Vatnajökull, the largest in Europe. Energy: Situated on the Mid-Atlantic Ridge, Iceland is a hot spot of volcanic and geothermal activity: 30 post-glacial volcanoes have erupted in the past two centuries, and natural hot water supplies much of the population with cheap, pollution-free heating. Rivers, too, are harnessed to provide inexpensive hydroelectric power. People: Of the 313.000 citizen, more than half live in the capital Reykjavík and its neighbouring towns in the southwest. Keflavík International Airport is located about 50 km from the capital. Language: Iceland was settled by Nordic people in the 9th century - tradition says that the first permanent settler was Ingólfur Arnarson, a Norwegian Viking who made his home where Reykjavík now stands. The Icelanders still speak the language of the Vikings, although modern Icelandic has undergone changes of pronunciation and, of course, of vocabulary! Iceland is alone in upholding another Norse tradition, i.e. the custom of using patronymics rather than surnames; and Icelander's Christian name is followed by his or her father's name and the suffix -son or -dóttir, e.g. Guðrún Pétursdóttir (Guðrún, daughter of Pétur). Members of a family can therefore have many different "surnames", which sometimes causes confusion to foreigners! History: In 930, the Icelandic settlers founded one of the world's first republican governments; the Old Commonwealth Age, described in the classic Icelandic Sagas, lasted until 1262, when Iceland lost its independence, and in 1944 the present republic was founded. The country is governed by the Althing (parliament), whose 63 members are elected every four years. Four-yearly elections are also held for the presidency; President Ólafur Ragnar Grímsson was elected in June 1996 to succeed Vigdís Finnbogadóttir, and was re-elected in June 2000. The head of state plays no part in day-to-day politics. Economy: Iceland has all the characteristics of a modern welfare state. National income per capita was somewhat above the EU average in 2007. Iceland has largely built on its comparative advantages in abundant marine and energy resources although the main driver of economic growth recently has been services with two-thirds of the working population employed in the service sector, both public and private. Fish and other marine products were the mainstay of an export oriented economy until early 2008, when exports of aluminium smelting products emerged as the largest single export product accounting for 40% of total export revenue. Export of services such as tourism have also been growing and account for almost one-fifth of total export revenue. Iceland is a member of the European Free Trade Association (EFTA) and the European Economic Area (EEC). Health: Life expectancy, at 81.3 years for women and 76.4 for men, is one of the highest in the world, and a comprehensive state health-care system aims to keep it that way.

Reykjavik 29 October 2008



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