WASHINGTON - THE International Monetary Fund has approved a US$2.1 billion (S$3.12 billion) loan for Iceland to help the Nordic nation's collapsed banking system recover and stabilise its economy in the midst of global financial turmoil.
The decision by the IMF's executive board on the two-year loan means Iceland gets access immediately to US$833 million. The approval also clears the way for Iceland to receive help from other Nordic nations who have indicated a willingness to provide loans.
The head of the IMF, Dominique Strauss-Kahn, said late on Wednesday Iceland had put together an ambitious economic program aimed at restoring confidence to the banking system, and stabilising its currency, the krona, through strong macroeconomic policies. -- AP
