Minister Jan Rostowski promised the money to his Icelandic counterpart, Steingrimur Sigfusson, during a International Monetary Fund (IMF) meeting in Istanbul.

“The loan will buttress Iceland’s liquid foreign exchange asset position and serve as a supplement to the 2.1 billion USD loan granted by the [IMF] in support of Iceland’s economic stabilization and reform program,” read a joint statement released by the ministers Sunday.

The long-term loan is to be repaid by Iceland within twelve years time, with a 5-year grace period.

Before the global economic crisis decimated Iceland’s banking sector, over 10,000 Polish citizens were registered to work in the country, making up the largest group of foreign nationals on the island.