## Press Release: IMF Announces Staff Level Agreement with Iceland on US$2.1 Billion Loan

_IMF News, October 24, 2008_

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**Canonical URL:** [Press Release: IMF Announces Staff Level Agreement with Iceland on US$2.1 Billion Loan](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr08256)

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## Bibliographic details
- Authors: Arrangement. Following
- Published: October 24, 2008

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### 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.*

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## References

- [Iceland and the IMF](http://www.imf.org/external/country/ISL/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr08256_