Iceland and IMF Complete Economic Program Skip to content

Iceland and IMF Complete Economic Program

The executive board of the International Monetary Fund (IMF) completed and approved the sixth and final review of Iceland’s economic recovery program on Friday, supported by a stand-by arrangement, making the country the first to complete such a program following the international financial recession.

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The Icelandic króna. Copyright: Icelandic Photo Agency.

The Executive Board of IMF originally approved the Icelandic government’s recovery program on November 19, 2008. Friday’s decision will release the final loan disbursement, ISK 51 billion (USD 449 million, EUR 309 million), as stated on the website of the Ministry of Finance.

Previous disbursements total ISK 200 billion (USD 1.8 billion, EUR 1.2 billion). In addition, Iceland was granted drawing rights by Nordic countries and Poland in connection with the program which totaled ISK 150 billion (USD 1.3 billion, EUR 1.0 billion).

The successful collaboration between Iceland and the IMF has drawn considerable attention. The objectives have been met, and economic stability has been achieved after “a perfect storm”, in the words of one IMF representative in Iceland in October 2008. Now the country is on a road to recovery, the ministry states.

Click here to read the ministry’s full statement on the completion of the program and the country’s economic situation.

Click here to read an updated status report on the Icelandic economy issued by the Icelandic Chamber of Commerce earlier this month.

ESA

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