Iceland Bailout: IMF approves final funds release

WASHINGTON: The International Monetary Fund on Friday approved the final release of funds in its $2.25 billion bailout programme for Iceland, three years after its economy plunged into crisis in a banking collapse. After a sixth and final review of the country’s progress in reforming its financial system and restoring economic growth, the IMF said it was releasing another $450 million to the northern Europe island nation. But according to an official involved in discussions between Iceland and the IMF, Reykjavik might make a request for new funding from the IMF that would be less tied to conditions. Iceland’s booming economy collapsed in 2008 when suddenly the hugely overstretched banking sector plunged into crisis and its three major banks went belly-up within a matter of weeks.

Published in The Express Tribune, August 28^th, 2011.