IMF: Icesave Could Prevent Review for Iceland Skip to content

IMF: Icesave Could Prevent Review for Iceland

Managing director of the International Monetary Fund Dominique Strauss-Kahn said he doubts the majority of the IMF board supports the second review of the economic stabilization program for Iceland because the Icesave dispute between Iceland, the UK and the Netherlands is still unresolved.

In an interview with Bloomberg today, Strauss-Kahn iterated his earlier comments that the Icesave dispute shouldn’t impact IMF but that the majority of the board must still support the second review for Iceland, reports.

The second review will guarantee further disbursement of loans to Iceland, which has been stalled ever since the Icelandic president vetoed the Icesave legislation on January 5.

Strauss-Kahn said he is personally of the opinion that it is useful to continue with Iceland’s review but he said he cannot predict whether a majority can be achieved within the IMF board as long as Iceland, the UK and the Netherlands are unable to reach an agreement on the Icesave payback scheme. reported yesterday that the review of the economic stabilization program for Iceland is not on the IMF’s agenda next week.

However, IMF spokesperson Caroline Atkinson said Strauss-Kahn had received a request from Iceland that the review be discussed.

Icelandic Minister of Finance Steingrímur J. Sigfússon and Minister of Economic Affairs Gylfi Magnússon iterated that request during their meeting with Strauss-Kahn in Washington last week, following which Strauss-Kahn ordered a closer cooperation with Iceland.

After the meeting the Icelandic ministers were optimistic about Iceland’s program being reviewed next month.

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