The IMF and a group of European countries are preparing a $6 billion loan to Iceland, hit hard by the financial crisis.
'Poland has decided to join a consortium of countries that will offer financial support to Iceland,' a statement from Poland's finance ministry said today.
It listed Poland's contribution at $200 million and said the loan's conditions will be established through negotiations between Iceland and the IMF.
Iceland has already agreed with the IMF on a loan of $2.1 billion, but the IMF's confirmation of the deal, which had been scheduled for Wednesday, was delayed without explanation.
Iceland Prime Minister Geir Haarde said yesterday that the announcement probably would not come until November 10, indicating the decision had been delayed because his nation had yet to secure loans for the additional four billion dollars it needs to climb out of the crisis.
Reykjavik has sought assistance from a range of sources, including the European Central Bank and the Federal Reserve in Washington, but has focused most of its efforts on securing loans from its Nordic neighbours.
The country has been pushed to the brink of bankruptcy after the government in early October nationalised Iceland's three biggest banks and the currency nosedived.
Britain, rushing to protect Britons' savings in the Icesave branch of the nationalised Icelandic bank Landsbanki, used anti-terrorist laws to freeze the banks' assets, sparking protests by Icelanders as both sides threatened legal action.
Yesterday, an Icelandic lawmaker said some European countries indicated they would support an IMF loan and emergency EU aid to Reykjavik only if it settles the dispute over frozen British assets.
