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Iceland: Denmark has turned its back

Iceland's president has severely criticised several countries and is threatening to find new allies to survive.

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The Icelandic President Olafur Ragnar Grimsson has accused Sweden, Denmark and Great Britain of turning their backs on Iceland in its battle to survive the finance crisis.

During a luncheon with foreign diplomats in Reykjavik last week, Grimsson threatened to seek new allies as his country's former allies have failed his crisis-ridden country.

According to the Norwegian news agency NTB, shocked diplomats could hardly believe their own ears, according to a memorandum from the Norwegian embassy.

"The President issued heavy criticism against several of the countries represented, including Sweden and Denmark. And the President delivered directly insulting assertions against the British," the memorandum says.

New friends
"The North Atlantic is important for the Nordic region, the United States and Great Britain. That is a fact that these countries seem to be ignoring. So Iceland had better find itself some new friends," Grimsson said, according to the memorandum.

The only countries to receive praise during the luncheon were Norway and the Faroe Islands, who according to Grimsson showed themselves to be true friends during the crisis.

According to the Financial Times, the International Monetary Fund is wavering on giving its support for a loan in connection with a six billion dollar rescue package for Iceland.

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