An agreement has been reached on a letter of intent for the second review of the economic stabilization program for Iceland under Iceland’s stand-by arrangement with the International Monetary Fund. The review is tentatively scheduled to be discussed by the IMF’s executive board on April 16.
Photo by Páll Stefánsson.
Upon completion of the review, Iceland would become eligible to draw a third disbursement under the arrangement, in an amount of SDR 105 million (about USD 159 million), a press release from the Ministry of Economic Affairs reveals.
Icelandic authorities have issued a letter of intent to the fund that describes the progress made so far in limiting the impact of the crisis and setting the stage for a sustained recovery. The letter of intent will be made public after the board’s approval.
In recent weeks, the authorities have been working on eliminating obstacles in the way of completing the second review of the stand-by arrangement, most recently with meetings of the Minister of Economic Affairs with the fund’s managing director and executive directors in Washington on Wednesday.
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