Central Bank agrees on IMF loan
The board of Governors of the Central Bank of Iceland has agreed to Iceland asking for a loan from the International Monitary Fund. Previously the board was split in it´s stand on assistance from the IMF, according to the national paper Morgunblaðið. The Bank´s approval is not necessary. However the government wanted to find a solution to the economic situation in cooperation with the bank.
Prime minister Geir Haarde said yesterday that the loan could only be finalised when the Economic Forecast is ready. The Central Bank is an unexpected player in the Forecast after it asked for further guarantees from financial institutions owing the bank money.
Negotiations between the government and the IMF have been ongoing in the last days. The agreement is expected to be finalised in a matter of days.