Icelandic State Treasury Repays Part of IMF Loan Skip to content

Icelandic State Treasury Repays Part of IMF Loan

The Icelandic state treasury and the Central Bank of Iceland will repay ISK 171 billion (USD 1.4 billion, EUR 1.1 billion) in advance of their foreign loans this week which were obtained from the International Monetary Fund (IMF) and the Nordic countries as part of the Icelandic government’s and IMF’s economic stabilization program which was completed last year.

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Archive photo by Páll Stefánsson.

Thereof, ISK 62 billion will go to the IMF and ISK 109 billion to the Nordic countries. These advance payments have maturity dates in 2013- 2014, and 2016-2018, respectively, Fréttablaðið reports.

Once these advance payments have been made, 53 percent of the original IMF loan and 59 percent of the original loan from the Nordic countries have been repaid.

A statement from the Ministry of Finance reveals that the decision on making the advance payments followed an ISK 125 billion issue of bonds by the Icelandic state treasury in international markets in May.

That action is said to underline Iceland’s access to foreign liquidity markets and provide flexibility to repay short-term loans.

The decision was made with the relatively good liquid cash position the state treasury and Central Bank will have in foreign currencies in the coming months.

Click here to read more about Iceland’s collaboration with the IMF.

ESA

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