IMF approves a $2.1bn (£1.4bn) loan for Iceland

Nov 20, 2008 | Comments 1



November 20. The International Monetary Fund (IMF) announced the approval of a $2.1 billion loan for Iceland. The move comes after the October collapse of Iceland’s banking system.

In a statement the IMP said that the loan is to help Iceland “restore confidence and stabilise the economy”.

This is the first time since 1976 that the IMF has offered a loan to a Western European nation.
According to a Finnish Finance Ministry officer not long after the announcement was made Denmark, Norway, Sweden and Finland said they would also lend Iceland $2.5 billion.

The move was sparked by Gier Haarde the Prime Minister of Iceland informing Nordic countries that Iceland needed around $6 billion to survive the meltdown.

The Icelandic government was forced to take over Kaupthing, Landsbanki and Glitni Kaupthing three of the country’s largest debt –laden banks in October.

Source: BBC

Filed Under: Business News

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  • Jónas Thor

    I would llike to know what happen to the 400 million ISK that has now disappeared from the sale and privatization of Icelandic Telephone Company. This happen several years ago and it was promised by the government that it would be allocated to public projects. Nothing more been heard since. I cannot remember what Icelandic bank it was in, I can only assume that the cash no longer exists in that bank.