## Iceland: Staff Report for Second Review Under Stand-By Arrangement and Request for Extension of the Arrangement, Rephasing of Access and Establishment of Performance Criteria.

_IMF Staff Country Reports, April 21, 2010_

## Source details

**Canonical URL:** [Iceland: Staff Report for Second Review Under Stand-By Arrangement and Request for Extension of the Arrangement, Rephasing of Access and Establishment of Performance Criteria.](https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-staff-report-for-second-review-under-stand-by-arrangement-and-request-for-extension-23806)

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## Bibliographic details
- Authors: Arrangement, Request
- Published: April 21, 2010
- Series: IMF Staff Country Reports

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### Overview
- Publication date: April 21, 2010
- This report covers Iceland’s Second Review under the Stand-By Arrangement and Request for Extension of the Arrangement.
- Central finding: Supportive fiscal policies have helped consumption hold up better than expected.
- External sector developments highlighted: benefits from currency depreciation and higher commodity prices.
- Noted: overall improvements in inflation and the trade and current account balances since the late 2008 crisis have been striking.

### Macroeconomic developments and external sector
- Fiscal policy: Supportive fiscal policies correlated with stronger-than-expected consumption.
- External sector effects:
  - Currency depreciation supported external adjustment.
  - Higher commodity prices contributed positively to the external sector.
- Post-crisis adjustments: Significant improvements in inflation, trade balance, and current account balance since the late 2008 crisis.

### Sentiment and expectations
- Consumer indicators:
  - Indicators suggest firming consumer sentiment.
  - Inflation expectations are described as stable.
- Business indicators:
  - Business sentiment remains weak.

### Scope, subjects, and keywords
- Subjects covered: Asset and liability management; Banking; Debt restructuring; External debt; Financial institutions; Loans; National accounts; Private debt; Public debt.
- Keywords: CR, crisis, Debt restructuring, deficit, deficit adjustment, Dominique Strauss-Kahn, economy of Iceland, Iceland's economy, Iceland's effort, inflation expectation, ISCR, Loans, Private debt, savings bank.

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-staff-report-for-second-review-under-stand-by-arrangement-and-request-for-extension-23806_