Iceland: 2010 Article IV Consultation and Third Review under Stand-By Arrangement and Request for Modification of Performance Criteria-Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Iceland.

October 4, 2010

Preview Citation

Format: Chicago

Iceland: 2010 Article IV Consultation and Third Review under Stand-By Arrangement and Request for Modification of Performance Criteria-Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Iceland., (USA: International Monetary Fund, 2010) accessed November 23, 2024

Summary

Iceland’s gross external debt rose above 600 percent of GDP, while households and corporations accumulated heavy debt burdens with large exposures to foreign exchange and inflation risk. The global banking crisis exposed Iceland’s vulnerabilities, triggering a balance-of-payments crisis, a collapse of the exchange rate and output, and the failure of financial and many nonfinancial firms. The importance of accelerating the restructuring of banks’ operations and balance sheets and also policy frameworks has been stressed. The downward trend in inflation is welcomed.

Subject: Banking, Budget planning and preparation, External debt, Financial institutions, Foreign exchange, Loans, Public debt, Public financial management (PFM)

Keywords: Amount, Budget planning and preparation, Capital requirement, CR, Global, Indexed loan contract, ISCR, Krona interest rates, Loans, Monetary policy development, Upfront cash payment

Publication Details

Pages:

99
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2010/305
Stock No:

1ISLEA2010004
ISBN:

9781455208555
ISSN:

1934-7685

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