Iceland: Request for Stand-By Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Iceland
IMF Staff Country Reports, November 25, 2008
Source details
- Canonical URL
- Iceland: Request for Stand-By Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Iceland
Other formats
Bibliographic details
- Published: November 25, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819373.002
Summary findings
- Iceland’s economy is in the midst of a banking crisis of extraordinary proportions.
- The crisis is expected to lead to:
- a deep recession,
- a sharp rise in the fiscal deficit,
- a dramatic surge in public sector debt, reflecting a high fiscal cost of restructuring the banking system.
- The virtual collapse of the on-shore foreign exchange market poses a serious and immediate risk to the economy given its high import dependence.
Key subject areas and keywords
- Subjects: Balance of payments, Bank resolution, Banking, Commercial banks, Credit, Current account, External debt, Financial crises, Financial institutions, Foreign exchange.
- Keywords: Bank resolution, banking sector strategy, Commercial banks, CR, Current account, fiscal consolidation policy, fund, Global, government of Iceland, Iceland, ISCR, monetary policy environment, policy, SDR, sound banking system strategy.