Iceland asks for IMF help
The Icelandic government has formally asked the International Monitary Fund for support and a two billion dollar loan. Negotiations have been ongoing between the Icelandic government and an envoy from the IMF in Iceland for the past days and weeks. An agreement has been reached which will now be presented to the IMF Executive Board for approval. The process could take about ten days.
After the board´s approval Iceland will get about 830 million US$ of the 2 billion dollar loan. At a press conference today Iceland Prime Minister Geir Haarde said the loan will be paid back in the years 2012-2015.
„Gaining economic stability in Iceland and getting a grip on the krona is considered priority by the Icelandic government,“ Mr Haarde said.
A statement from the IMF quoted its Managing Director Dominique Strauss-Kahn: "Iceland has put together an ambitious economic program, which aims to restore confidence to the banking system, to stabilize the krona through strong macroeconomic policies, and to help the country achieve medium-term fiscal consolidation following the collapse of its banking system."