Iceland to get $6 bn IMF-led rescue package
If Iceland receives a loan from the International Monetary Fund, it would be the first Western nation to do so since 1976. Anatomy of credit crisis | Global icons crash
By Agencies |
REYKJAVIK: Iceland will soon announce a six-billion dollar (4.5-billion-euro) economic rescue plan sponsored by the IMF and several central banks, the Financial Times (FT) reported on its website on Monday.
The International Monetary Fund will shell out just over one billion dollars, while central banks from the Nordic region and Japan will chip in the rest for the Icelandic relief package, the FT reported, citing people with knowledge of ongoing talks between Reykjavik and the IMF.
"It is unknown whether Russia will participate in the rescue plan," the paper wrote.
Icelandic government spokeswoman Urdur Gunnarsdottir refused to comment on the report, only telling AFP that "a decision on IMF aid will be taken by Thursday."
If Iceland does receive a loan from the IMF, it would be the first Western country to do so since 1976.
Iceland's once booming financial sector has in recent weeks collapsed under the weight of the global financial crisis, with the government forced to take over the major banks for lack of liquidity and give up protecting the plunging krona, which has lost more than half of its value since January.
In an attempt to reboot its struggling foreign trade, the island nation has been scrambling to get hold of foreign currency.
Last week, an Icelandic delegation went to Moscow to try to negotiate a loan that could be worth as much as four billion euros (5.4 billion dollars).
The two sides failed to reach an agreement but negotiations are continuing.
The International Monetary Fund will shell out just over one billion dollars, while central banks from the Nordic region and Japan will chip in the rest for the Icelandic relief package, the FT reported, citing people with knowledge of ongoing talks between Reykjavik and the IMF.
"It is unknown whether Russia will participate in the rescue plan," the paper wrote.
Icelandic government spokeswoman Urdur Gunnarsdottir refused to comment on the report, only telling AFP that "a decision on IMF aid will be taken by Thursday."
If Iceland does receive a loan from the IMF, it would be the first Western country to do so since 1976.
Iceland's once booming financial sector has in recent weeks collapsed under the weight of the global financial crisis, with the government forced to take over the major banks for lack of liquidity and give up protecting the plunging krona, which has lost more than half of its value since January.
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In an attempt to reboot its struggling foreign trade, the island nation has been scrambling to get hold of foreign currency.
Last week, an Icelandic delegation went to Moscow to try to negotiate a loan that could be worth as much as four billion euros (5.4 billion dollars).
The two sides failed to reach an agreement but negotiations are continuing.
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