Iceland takes decisive action with the launch of an economic stabilisation plan in conjunction with the IMF
Reykjavik, Iceland – 24 October 2008–
The Icelandic Government has reached an agreement ad referendum with a mission from the International Monetary Fund (IMF) on a comprehensive stabilisation program. We have reached agreement ad referendum with a mission from the IMF on an economic stabilisation program that could be supported by a stand-by arrangement with the fund. The mission will now return to Washington to get approval of this program from the IMF‘s management. We are confident that the IMF‘s management will support the program and submit it for approval by the IMF‘s executive board as soon as possible. The economic program will be supported by an SDR 1.4 billion (USD 2 billion) loan under a two-year Stand-By-Arrangement. Iceland would be able to draw SDR 560 million (USD 830 million) immediately after the Board approval. It is also expected that an agreement with the IMF will encourage lending from other sources.
Further information can be approached on the websites of the Prime Minister’s Office, see:
http://eng.forsaetisraduneyti.is/news-and-articles/nr/3108
and the International Monetary Fund, see:
http://www.imf.org/external/np/sec/pr/2008/pr08256.htm