Iceland Expected to Announce IMF-Led Loan Skip to content

Iceland Expected to Announce IMF-Led Loan

Icelandic authorities are expected to announce today or tomorrow their decision to accept a USD 6 billion (EUR 4 billion) loan from the International Monetary Fund (IMF), Japan and the other Nordic countries to help solve the country’s economic crisis.

Iceland’s government has not made a formal request to the IMF and talks are still ongoing. But according to the Financial Times’ sources, an official letter to that effect will be submitted to the IMF shortly.

The IMF “rescue package,” as it is described on FT.com, is considered a breakthrough for Iceland, which has had problems with receiving backing from the international community without a “seal of approval” from the IMF.

Icelandic authorities and an IMF delegation have been discussing a potential loan from the organization for about a week, focusing on what kind of terms such a loan would entail.

Iceland was concerned that the IMF would request the state-run Housing Financing Fund (HFF) be privatized, but allegedly that is no longer a concern.

Click here to read more about this story in the Financial Times.

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