The executive board of the International Monetary Fund has approved the second review of its economic stabilization program for Iceland. Icelandic Finance Minister Steingrímur J. Sigfússon says this radically changes Iceland’s situation.
Minister of Finance Steingrímur J. Sigfússon. Photo by Páll Kjartansson.
“To have the opportunity to strengthen our foreign currency reserves to such an extent saves us, in fact. Not just in the coming months but now we believe we can get through the years 2011 and 2012. We have found shelter and are in a much better position,” Sigfússon told mbl.is.
“We have reason to believe that this will have a positive impact on many areas. It makes it easier for us to lower the key interest rate, encourages currency stability and even the appreciation of the króna,” the minister added.
“It will influence the country’s credit rate position and hopefully also have a positive effect on the program’s credibility, provide access to foreign financial markets and other areas. It is likely to have manifold positive effects,” Sigfússon concluded.
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