Press Release No. 12/235

Press Release: Iceland Repays Early Some Outstanding Obligations to the IMF

June 22, 2012

Iceland today repaid, ahead of schedule, obligations to the IMF amounting to SDR 319.375 million (about US$483.7million).

The early repayment is about one fourth (23 percent) of the SDR 1.4 billion (about US$ 2.1 billion) that Iceland borrowed from the IMF under its Stand-By Arrangement (see Press Release 08/296). The amounts repaid early are obligations falling due in 2013 and 2014 under the original repayment schedule.

This early repayment will reduce Iceland’s outstanding obligation to the IMF to SDR 651.875 million (about US$987.3 million). This outstanding balance is projected to be repaid during 2012-16.

After this early repayment, and taking into account a similar early repayment of Iceland’s Nordic loans, reserve adequacy—as measured by the ratio of reserves-to-short term debt—will remain above the standard benchmark of 100 percent.

A prior early repayment was made on March 15, 2012 (see Press Release 12/84).