Iceland ups interest rate to 18%

Iceland's central bank has raised its key interest rate to 18% from 12% as the country battles against financial collapse

The move came as Iceland's prime minister said the country needed another $4bn (£2.6bn) in loans.

"It's not a precise number, it's not a scientific number but we are looking in that neighborhood," Geir Haarde said.

The country has already agreed a $2bn loan from the International Monetary Fund (IMF).