Central Bank of Iceland Directors Agree on IMF Loan Skip to content

Central Bank of Iceland Directors Agree on IMF Loan

By Iceland Review

The Central Bank of Iceland board of directors has agreed to accept a loan from the International Monetary Fund (IMF). There had earlier been disagreement within the board on whether Iceland should accept a loan from the IMF or not.

Iceland’s government does not need permission from the Central Bank for applying for a loan from the IMF, but wanted complete agreement on the move before the decision was made, Morgunbladid reports.

Prime Minister Geir H. Haarde said yesterday that his government was waiting for an economic forecast to be completed before applying for a loan from the IMF.

The Central Bank itself has come to play an unexpected part in that forecast in light of potential loss of assets in relation to loans granted to financial companies. The Central Bank has therefore requested new collateral from these companies.

Click here to read more about that story and here to read more about a potential loan to Iceland from the IMF.

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