{"id":6651,"date":"2022-07-20T00:35:50","date_gmt":"2022-07-20T00:35:50","guid":{"rendered":"https:\/\/www.iceland.org\/?p=6651"},"modified":"2022-07-20T13:47:18","modified_gmt":"2022-07-20T13:47:18","slug":"economic-program-with-img","status":"publish","type":"post","link":"https:\/\/www.iceland.org\/info\/iceland-imf-program\/","title":{"rendered":"Economic Program With IMG"},"content":{"rendered":"<div class=\"article box\">\n<div class=\"content\">\n<h1>Economic programme in cooperation with IMF<\/h1>\n<p>&nbsp;<\/p>\n<p>The Icelandic government decided to seek assistance from the International Monetary Fund (IMF) immediately after the onset of the financial crises. An agreement and an economic programme was finalized by October 24 2008.<\/p>\n<p>On November 19th the IMF approved Iceland\u2019s request for a two year stand-by arrangement. <a class=\"wpil_keyword_link\" title=\"Iceland\" href=\"https:\/\/www.iceland.org\" data-wpil-keyword-link=\"linked\">Iceland<\/a> will receive USD 2.1 billion from the IMF. Additional loans of up to USD 3 billion have been secured from Denmark, Finland, Norway, Sweden, Russia, and Poland. The Faroe Islands have announced that they would lend Iceland USD 50 million.<\/p>\n<p>The IMF stand-by arrangement is based on an economic programme outlined in a\u00a0<a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/letter-of-intent\/\">Letter of Intent<\/a>. The programme was formulated by the Government and Central Bank of Iceland in close consultation with the IMF.<\/p>\n<p>The programme focuses on three main areas:<\/p>\n<ul>\n<li>Stabilizing exchange rate and rebuild confidence in monetary policy.<\/li>\n<li>Review and revise fiscal policy with the aim of maintaining a manageable level of public sector debt and debt service in spite of lost revenues and increased expenditures.<\/li>\n<li>Banking sector restructuring and reform of the insolvency framework in accordance with transparent, internationally recognized principles.<\/li>\n<\/ul>\n<p align=\"left\"><strong>One overarching goal:<\/strong><\/p>\n<p><strong>Re-establish confidence in the Icelandic economy.<\/strong><\/p>\n<p>Further information:<\/p>\n<ul class=\"arrows\">\n<li><strong><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/media\/info\/Efnahagsaetlun_April2009.pdf\">The Icelandic Economic Programme &#8211; April 2009<\/a><\/strong>\u00a0(pdf)<\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/http:\/\/eng.forsaetisraduneyti.is\/news-and-articles\/nr\/3527\" target=\"_blank\" rel=\"noopener\">Statement by the IMF Mission to Iceland, 13 march 2009<\/a><\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/http:\/\/eng.forsaetisraduneyti.is\/news-and-articles\/nr\/\" target=\"_blank\" rel=\"noopener\">IMF concludes its February\/March visit<\/a><\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/http:\/\/eng.forsaetisraduneyti.is\/news-and-articles\/nr\/3293\" target=\"_blank\" rel=\"noopener\">IMF Mission to Iceland: Government Actions Proceeding on Schedule<\/a><\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/http:\/\/www.imf.org\/external\/pubs\/ft\/survey\/so\/2009\/int022409a.htm\">Read an interview with the IMF\u2019s new mission chief for Iceland,<br \/>\nMark Flanagan, on the IMF&#8217;s website<\/a><\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/media\/info\/Iceland_IMF_Timeline.pdf\" target=\"_new\" rel=\"noopener\">Timeline of Iceland&#8217;s economic program with the IMF<\/a>(pdf)<\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/http:\/\/www.imf.org\/external\/pubs\/ft\/scr\/2009\/cr0952.pdf\" target=\"_blank\" rel=\"noopener\">Iceland: Stand-By Arrangement<br \/>\n&#8211; Interim Review Under the Emergency Financing Mechanism<\/a>(pdf)<\/li>\n<\/ul>\n<div class=\"clear\"><\/div>\n<\/div>\n<\/div>\n<div class=\"articlelist box\">\n<h2 class=\"boxhd\">Questions and Answers<\/h2>\n<div class=\"content\">\n<div class=\"item firstitem cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6389\">Why did Iceland seek cooperation with the IMF?<\/a><\/h3>\n<div class=\"summary\">There are several reasons why Iceland sought cooperation with the IMF.One is that the International Monetary Fund (IMF) is the only internationally recognised institution with an advisory function which assists States going through serious currency crises<span class=\"more\"><a title=\"Why did Iceland seek cooperation with the IMF?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6389\">Read more<\/a><\/span><\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"item cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6390\">Which parties, apart from the IMF, are involved?<\/a><\/h3>\n<div class=\"summary\">Apart from the team of IMF experts, the Icelandic authorities have called upon international consulting firms, international accounting firms as well as respected domestic and foreign experts<span class=\"more\"><a title=\"Which parties, apart from the IMF, are involved?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6390\">Read more<\/a><\/span><\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"item cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6391\">What are the IMF conditions in regard to Iceland?<\/a><\/h3>\n<div class=\"summary\">It seems more fitting to speak of stages in the work ahead rather than conditions.<span class=\"more\"><a title=\"What are the IMF conditions in regard to Iceland?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6391\">Read more<\/a><\/span><\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"item cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6392\">Are there any more detailed conditions in any non-published data?<\/a><\/h3>\n<div class=\"summary\">No, both the Icelandic authorities and the IMF have as a principle that the entire plan, along with any supporting documentation and explanations, be published officially as soon as the IMF Executive Board had consented to it.<span class=\"more\"><a title=\"Are there any more detailed conditions in any non-published data?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6392\">Read more<\/a><\/span><\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"item cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6393\">Does the IMF cooperation leave room for the government to assist Icelandic families and firms?<\/a><\/h3>\n<div class=\"summary\">Yes, because next year when the contraction created by the banking crisis hit with full force, the automatic state fiscal stabilisers will be activated extensively to alleviate the most severe blow by allowing a large budget deficit.<span class=\"more\"><a title=\"Does the IMF cooperation leave room for the government to assist Icelandic families and firms?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6393\">Read more<\/a><\/span><\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"item cat0\">\n<h3><a href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6394\">Does the plan stipulate that parties will be held accountable?<\/a><\/h3>\n<div class=\"summary\">\n<p>Yes, an extensive investigation by impartial foreign experts is specifically mentioned in two of its clauses.<\/p>\n<p><span class=\"more\"><a title=\"Does the plan stipulate that parties will be held accountable?\" href=\"https:\/\/web.archive.org\/web\/20090501222904\/https:\/\/www.iceland.org\/info\/iceland-imf-program\/imf-faq\/nr\/6394\">Read<\/a><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Economic programme in cooperation with IMF &nbsp; The Icelandic government decided to seek assistance from the International Monetary Fund (IMF) immediately after the onset of the financial crises. An agreement and an economic programme was finalized by October 24 2008. On November 19th the IMF approved Iceland\u2019s request for a two year stand-by arrangement. Iceland [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/posts\/6651"}],"collection":[{"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/comments?post=6651"}],"version-history":[{"count":0,"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/posts\/6651\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/media?parent=6651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/categories?post=6651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iceland.org\/wp-json\/wp\/v2\/tags?post=6651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}