IMF Staff Country Reports

Iceland : Request for Stand-By Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Iceland

Author/Editor:

International Monetary Fund

Publication Date:

November 25, 2008

Electronic Access:

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Summary:

This paper examines key findings of Iceland’s Request for a Stand-By Arrangement from the IMF. Iceland’s economy is in the midst of a banking crisis of extraordinary proportions that is expected to lead to a deep recession, a sharp rise in the fiscal deficit, and a dramatic surge in public sector debt, reflecting a high fiscal cost of restructuring the banking system. The virtual collapse of the on-shore foreign exchange market poses a serious and immediate risk to the economy considering its high import dependence.

Series:

Country Report No. 08/362

Subject:

Announcements Bank restructuring Banking crisis Budget deficits Economic indicators Exchange rate depreciation Fiscal consolidation Fiscal sustainability Public debt Staff Reports Stand-by arrangement requests