IMF Prepares Fourth Review for Iceland

A mission from the International Monetary Fund (IMF) concluded its 12-day visit to Iceland on Sunday. The visit was in conjunction with the fourth review under the fund’s Stand-By Arrangement.


Copyright: Icelandic Photo Agency.

According to a press release, the mission met with government officials, parliamentarians, academics, representatives of the private sector and trade organizations. The head of the IMF mission to Iceland is Julie Kozack.

Following the visit, the IMF mission will issue a staff report to the IMF Executive Board; this will be done before the fourth review can be brought forward for consideration by the board.

Furthermore, the government will issue an updated letter of intent which will describe policy actions to be taken in the next phase of the economic program.

“The fund considers us to be on the right track,” said Minister of Economic Affairs Árni Páll Árnason. “The restructuring of household and corporate debt is a priority for the Ministry and we welcome the IMF’s affirmation of its importance.”

“The fundamental principle is, though, that debt beyond ability to pay be written off, while making sure that the cost of debt restructuring is not socialized,” the minister added.

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