Icelandic banks have invested at least $250 million in the Newfoundland and Labrador fishery.
Telegram editor Russell Wangersky pointed to that fact in his latest column:
That's the $250 million or so Williams was talking about last year, a number that has almost certainly grown considerably since then. Icelandic banks have traded on the fact that, coming from a fishing nation, they understand the needs of the fishery. And truth be told, they've been one of the few sources of available capital for fishing companies in this province, even before the credit crunch hit.
And now, those same banks are promising to get out of their overseas investments. That's a message that must be more than a little frightening for the industry in this province, with capital scarcer than ever.
If the Icelandic banks call those loans - as a ready source of foreign currency - some entity, public or private, will likely be called on to step in an assist the fishing companies.
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