OSLO, Nov 3 (Reuters) - The Norwegian finance ministry and central bank said on Monday that Norway would lend the Icelandic central bank 500 million euros ($644 million), and extend an existing forex swap agreement through 2009.
The loan will have a maturity of up to 5 years.
"This loan requires a state guarantee from the Norwegian government," the Norwegian central bank, Norges Bank, said in a statement.
In May this year, Norges Bank and Iceland's Sedlabanki agreed on a swap facility that gave Sedlabanki the right to acquire 500 million euros when it needed. The Icelandic bank has drawn 200 million euros from this agreement.
"The agreement was set to mature on Dec. 31, but has been extended to Dec. 31 2009," Norges Bank said in a statement.
(Reporting by Aasa Christine Stoltz) ($1=.7764 Euro) Keywords: NORWAY ICELAND/

(aasachristine.stoltz@reuters.com; +47 22 93 69 02; Reuters messaging: rm://aasachristine.stoltz.reuters.com@reuters.net)

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