Norway will discontinue all further financial aid to Greece in the amount of $42M.
The Norwegian Foreign Minister Jonas Gahr Store said in a speech to Parliament, that he was saddened about this decision because he did not want to aggravate the situation in Greece but felt Norway had no choice.
It is important to note that Norway is not an EU member but does belong to the European Economic Area (EEA). Out of the 194 billion Euros that Greece received, $43M does not seem a lot, it represents well below 1% of total package. However, in terms of confidence, this does not bode well for the situation at hand. The question that comes to mind is: Which country is next to stop payments to Greece? Is this just the beginning of the domino effect?
The EURO has not taken kindly to these developments EURUSD is down 150 pips on the day.