16 April 2010

The Second Review of the economic programme

Today the Executive Committee of the International Monetary Fund (IMF) approved the Second Review of Iceland’s economic programme. At the request of the Icelandic authorities, it was also agreed to extend the Fund’s loan facility by three months, or until end-August 2011. The remaining five programme reviews will be adapted to this change. The extension was requested because of delays in reviewing the programme.

This decision by the Executive Committee of the IMF means that the third tranche of the Stand-By Arrangement will be available to Iceland. The amount of the third tranche is 105 million SDRs, or 160 million US dollars, which is roughly equivalent to 20 billion Icelandic krónur. The total loan facilities granted by the Fund in connection with the programme amount to 770 million SDRs, or 1,173 million US dollars.

With the IMF Executive Board’s approval of the Second Review, the Icelandic Government is expected to gain access to loans from the Nordic countries and Poland.

See further: Letter of intent:
Letter of intent (dated 7 April 2010)