Political Changes in Iceland Delay IMF Payment Skip to content

Political Changes in Iceland Delay IMF Payment

Franek Rozwadowski, the International Monetary Fund (IMF) representative in Iceland, revealed yesterday that political changes and technical difficulties had delayed the payment of USD 155 million (EUR 120 million)—a part of the USD 2.1 billion (EUR 1.6 billion) IMF-led loan package to Iceland.

Former government leaders Geir H. Haarde and Ingibjörg Sólrún Gísladóttir at a press conference last year. Their coalition was terminated in January. Copyright: Icelandic Photo Agency.

The first part of the payment was received in November last year.

“The work has taken longer that expected, among other items in relation to the reorganization of the banking system,” Rozwadowski said in an interview with Morgunbladid.

“Another significant factor is that political changes took place in the country earlier this year and while they were taking place, work almost came to a complete halt,” Rozwadowski added.

Rozwadowski explained that technical difficulties that emerged during the analysis of Iceland’s economic problems had also led to the delay of the aforementioned payment. However, the delay itself has little or no effect on the country’s economy, he stated.

Click here to read more about Iceland and the IMF.

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