IMF Mission to Iceland completes visit for second review
The IMF mission to Iceland has completed its visit, in conjunction with the second review under the fund‘s Stand-By Arrangement. Representatives from the government, parliament, academia, labor and trade unions as well as from the private sector have met with the mission during the past two weeks. The head of the IMF mission to Iceland is Mark Flanagan.
On behalf of the government the Ministry for Economic Affairs is in charge of discussions with mission as well as collaboration under the IMF‘s Stand-By Arrangement. Mr. Gylfi Magnusson, minister for economic affairs, is pleased with the results of the IMF mission. „The IMF and the government agree that our economic programme has resulted in a less dramatic downturn and more limited growth of unemployment compared to what had been expected. It is also worth mentioning that major milestones have been met in building and capitalizing the new banking system. We are hard at work on our fiscal consolidation plan which will lay important groundwork for renewed economic growth. Admittedly there are still tough times ahead but we fully expect that before the end of next year the economy will have turned the corner.“
Following the visit the mission will issue a staff report to the IMF Executive Board, before the second review can be brought forward for consideration by the board. The IMF will release USD 168 m. following this review and the Nordic countries and Poland will release a total of USD 690 m. A decision by the IMF Executive Board can be made as early as by end of January 2010. At that time the government will issue an updated letter of intent which will describe policy actions to be taken in the next phase of the economic programme.