Following repeated delays, on November 19th the IMF finally
approved a $2.1 billion loan to Iceland aimed at reviving the country’s
economy "after the collapse of its banking system in October triggered a
crisis of investor confidence and a sharp decline in the value of the Krona. The
IMF loan is in the form of a two-year stand-by agreement, with Iceland able to
draw about $825 million immediately and the remainder in eight installments each
of around $155 million, subject to quarterly reviews.
Negotiations over the IMF bailout(救援行动) had been ongoing for a number of
weeks, held up not so much by the need for the government to meet requisite
policy conditions as by an increasingly bitter dispute concerning the Icelandic
state’s obligations to reimburse(偿还) depositors -- mostly in the UK, Netherlands
and Germany -- holding savings accounts with Icesave, the online arm of one of
the bankrupt Icelandic lenders, Landsbanki. Previously the government had
threatened only to reimburse domestic depositors. Before the IMF
loan could be agreed, Iceland had to commit to guaranteeing to each depositor
the minimum payment of 20,887, as stipulated under European Economic Area
(EEA) legislation that allowed Icelandic banks to operate in the EU. Precise
details of how all the refunds will be made are still to be finalized, although
it was stressed that today’s IMF loan will not be used to repay depositors.
The UK has loaned $3.3 billion to Iceland to cover the estimated 300,000
British depositors in Icesave. In a joint statement, the British, Dutch and
German governments indicated that the countries will all work together "to
conclude agreements on pre-financing that enables Iceland to meet its
obligations toward depositors shortly." As well as reaching an
agreement on Icesave, the IMF had also wanted confirmation of additional binding
support from Iceland’s Nordic neighbors. Finland, Sweden, Norway and Denmark
have agreed to lend a combined $2.5 billion, with Poland offering a further $200
million and even the tiny Faroe Islands stumping up $50 million. Talks are also
believed to be ongoing with Russia, while EU countries may provide future
funding. The agreements that British, Dutch and German governments intended to conclude were to make the Iceland able to ______.