Iceland: Stand-By Arrangement: Interim Review Under the Emergency Financing Mechanism
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Summary:
This paper describes the Stand-By Arrangement for Iceland under the Emergency Financing Mechanism. The crisis is producing a sharp contraction of economic activity. Indicators of consumption are plummeting, and the deterioration in the labor market is accelerating, with rising unemployment and falling real wages contributing to a considerable contraction in real incomes. Significant import compression is under way, allowing a sustained turnaround in the trade balance, as exports continue to benefit from a weaker króna. The króna interbank market is inactive, and equity markets remain under pressure with trade being thin.
Series:
Country Report No. 2009/052
Subject:
Bank deposits Banking Commercial banks External debt Financial institutions Foreign exchange Loans Public debt
English
Publication Date:
February 11, 2009
ISBN/ISSN:
9781451819403/1934-7685
Stock No:
1ISLEA2009002
Pages:
21
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