{
  "title": "Iceland: Ex Post Evaluation of Exceptional Access Under the 2008 Stand-by Arrangement",
  "publication": "IMF Staff Country Reports, April 12, 2012",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-ex-post-evaluation-of-exceptional-access-under-the-2008-stand-by-arrangement-25855",
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  "summary": "The ex-post evaluation of Iceland’s Exceptional Access under the 2008 Stand-By Arrangement is presented. In the wake of the global financial crisis in late 2008, Iceland has experienced a deep financial and economic crisis of its own.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- The ex-post evaluation of Iceland’s Exceptional Access under the 2008 Stand-By Arrangement is presented.\n- In the wake of the global financial crisis in late 2008, Iceland experienced a deep financial and economic crisis.\n- Domestically, the rapid increase in lending fuelled bubbles in all asset classes, particularly the stock market and real estate.\n- Inflated asset prices and nontransparent cross-financing and related party lending between banks and holding companies helped mask poor asset quality.\n- These practices facilitated the financing of credit expansion by borrowing abroad, increasing vulnerability."
    },
    {
      "heading": "Key findings and analytical points",
      "content": "- Rapid credit growth contributed to asset price bubbles in the stock market and real estate.\n- Nontransparent cross-financing and related party lending obscured poor asset quality within banks and holding companies.\n- Reliance on foreign borrowing to finance credit expansion heightened external vulnerability.\n- The document presents an ex-post evaluation of the exceptional access provided under the 2008 Stand-By Arrangement in this context."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subjects:\n  - Balance of payments\n  - Banking\n  - Capital controls\n  - Commercial banks\n  - External debt\n  - Financial crises\n  - Financial institutions\n  - National accounts\n  - Private debt\n  - Public debt\n- Keywords:\n  - bad-bank approach\n  - bank collapse\n  - bank support\n  - bank Support\n  - banking system\n  - banks business diversification\n  - capital control\n  - capital control liberalization\n  - Capital controls\n  - central bank\n  - Commercial banks\n  - control liberalization\n  - CR\n  - debt restructuring\n  - exchange rate development\n  - Global\n  - government of Iceland\n  - ISCR\n  - monetary policy\n  - overhang problem\n  - policy option\n  - post evaluation\n  - Private debt\n  - program projection\n  - restructuring cost\n\n---\n\n Content in this bundle\n\n- Executive Summary — cr1291\n  - Executive Summary — cr1291 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Executive Summary — cr1291 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "Published: April 12, 2012",
    "Series: IMF Staff Country Reports",
    "The ex-post evaluation of Iceland’s Exceptional Access under the 2008 Stand-By Arrangement is presented.",
    "In the wake of the global financial crisis in late 2008, Iceland experienced a deep financial and economic crisis.",
    "Domestically, the rapid increase in lending fuelled bubbles in all asset classes, particularly the stock market and real estate.",
    "Inflated asset prices and nontransparent cross-financing and related party lending between banks and holding companies helped mask poor asset quality.",
    "These practices facilitated the financing of credit expansion by borrowing abroad, increasing vulnerability.",
    "Rapid credit growth contributed to asset price bubbles in the stock market and real estate.",
    "Nontransparent cross-financing and related party lending obscured poor asset quality within banks and holding companies.",
    "Reliance on foreign borrowing to finance credit expansion heightened external vulnerability.",
    "The document presents an ex-post evaluation of the exceptional access provided under the 2008 Stand-By Arrangement in this context.",
    "Subjects:",
    "Keywords:",
    "**Executive Summary — _cr1291**"
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