Iceland Press Release 2009/1

August 1, 2009


Resident Mission in Reykjavik

Regarding the first review under Iceland´s Stand-By Arrangement, Poul Thomsen, Deputy Director in the European Department of the International Monetary Fund (IMF) made the following statement:

"The government of Iceland and IMF staff have reached agreement on policies to underpin the first review under the Stand-By Arrangement. The agreement is now being reviewed by IMF management and will then need to be presented to the IMF's Executive Board for their consideration and approval. Taking into account the Executive Board's informal recess in early August, a meeting could be held in late August or early September.

"The review, which would release SDR 105 million in support of Iceland's economic recovery program, was initially scheduled for the first quarter of 2009, but has been delayed. With the additional time, the authorities have been able to fully articulate their policy plans, including towards fiscal consolidation and capital control liberalization, and to advance financial sector restructuring work."