Iceland's government is trying to wrest control of the increasingly dire situation and restore some confidence in the country's hard-hit banking sector. The move comes a day after trading in shares of major banks was suspended and the Icelandic krona fell a quarter against the euro.

The central banks says the maturity of the loan from Russia is three to four years. The bank says discussions about the loan had begun some months ago. It said Oct. 7, the money would significantly bolster its foreign exchange reserves and would support its falling currency.