Reykjavik - Iceland that has been severely battered by the global credit crunch Thursday welcomed emergency loans approved by the International Monetary Fund (IMF) and Nordic neighbours.

Nordic neighbours of the cash-strapped North Atlantic nation earlier Thursday said they have approved a 2.5-billion-dollar loan, supplementing a similar IMF loan.

The Nordic announcement came the day after the executive board of the IMF approved a two-year 2.1-billion-dollar loan after a tentative deal was clinched last month.

Reykjavik/Dieburg - Karlheinz Bellmann went to Iceland to find out what had happened to his savings of 110,000 euros (138,000 dollars), missing since the collapse of the country's Kaupthing Bank.

Four days later, on his way back to Germany, the father of four had other matters on his mind: "What can one do to help the people here?"

Reykjavik  - Iceland was Monday expecting to reach a quick deal with German depositors in Kaupthing Bank, one of the North Atlantic nation's three main banking groups that recently collapsed over the global credit crunch.

Kaupthing had some 30,000 customers in Germany.

Late Sunday, Iceland said it had agreed to reimburse British and Dutch depositors of failed internet bank Icesave, operated by the collapsed Landsbanki Bank.

The compensation agreed for the British and Dutch depositors was 20,000 euros (25,300 dollars).

Reykjavik - Around 6,000 Icelanders protested over the financial crisis Saturday by throwing eggs, tomatoes and toilet paper during a demonstration at the country's parliament, police reported.

The number of people to show up for one protest was unusual for Iceland, which has a total population of 320,000.

Speakers at the demonstration called for the resignation of Prime Minister Geir Haarde and for early elections.

Brussels - Popstar Bjork said Thursday that Iceland should join the European Union to protect the country's economy and give it a greater voice in climate change talks.

"Right now, it looks like its the only way," Iceland's greatest celebrity said when asked whether she was in favour of her country joining the EU.

Reykjavik  - Iceland's central bank on Thursday said it would keep its key interest rate at 18 per cent, after raising the rates at the end of October.

Inflation at the end of October hit almost 16 per cent, and could climb to 20 per cent early next year, the central bank said in its monetary bulletin that also projected that GDP would drop by over 8 per cent in 2009.

Stabilizing the Icelandic currency would bring down inflation and rates the bank said, adding that extending current wage agreements without further wage hikes was a factor.

The central bank, or Sedlabanki, raised interest rates from 12 to 18 per cent on October 28. In mid-October it had cut the rates from 15.5 per cent to 12 per cent.