Press Release: IMF Announces Staff Level Agreement with Iceland on US$2.1 Billion Loan
IMF News, October 24, 2008
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- Press Release: IMF Announces Staff Level Agreement with Iceland on US$2.1 Billion Loan
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Bibliographic details
- Authors: Arrangement. Following
- Published: October 24, 2008
Headline information
- Press Release No. 08/256
- Date: October 24, 2008
- Statement issued by Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF)
Agreement and financing package
- IMF staff mission and the Iceland authorities reached an ad referendum agreement on an economic program.
- The program is supported by an SDR 1.4 billion (about US$2.1 billion) loan under a two-year Stand-By Arrangement.
- Following review by Management, the agreement could be presented to the IMF Executive Board for approval in early November.
- Iceland would be able to draw SDR 560 million (US$833 million) immediately after Board approval.
Program objectives and focus
- Restore confidence in the banking system.
- Stabilize the krona through strong macroeconomic policies.
- Help the country achieve medium-term fiscal consolidation following the collapse of its banking system.
- Focused on essential upfront measures needed to restore confidence and economic and financial stability.
- Overarching goal: support Iceland's effort to adjust to the economic crisis in a more orderly and less painful way.
Access and international support
- The package represents access to Fund resources equivalent to 1,190 percent of Iceland's quota in the IMF.
- Mr. Strauss-Kahn stated that the high level of access is justified by the strong policies and deserves the support of the international community.
International Monetary Fund press release dated October 24, 2008.