Iceland's central bank said today it would become the intermediary for all international money transfers to the cash-strapped country to ensure the money reaches its intended destination.
'Due to the extraordinary circumstances in banking today we have a reason to believe that some payments that should be directed from abroad to Icelandic banks are being halted on their way,' the central bank said in a statement.
'In order to secure payments to Icelandic banks, Sedlabanki (the central bank) hereby guarantees that all payments that banks send through Sedlabanki for credit of local bank accounts will reach the ultimate beneficiaries' accounts with the local banks,' it said.
At the beginning of last week, Iceland was forced to introduce emergency laws to save its once booming financial sector, allowing the government to take control of all banks and financial bodies, take over assets and merge institutions.
