PRESS RELEASE FROM THE CENTRAL BANK OF ICELAND:
The Executive Board of the International Monetary Fund (IMF) today approved a two-year SDR 1.4 billion (about US$2.1 billion) Stand-By Arrangement for Iceland to support the country’s program to restore confidence and stabilize the economy.
The approval makes SDR 560 million (about US$827 million) immediately available and the remainder in eight equal installments of SDR 105 million (about US$155 million), subject to quarterly reviews. The Stand-By Arrangement entails exceptional access to IMF resources, amounting to 1,190 percent of Iceland’s quota, and was approved under the Fund’s fast-track Emergency Financing Mechanism procedures.
For further information please see the Fund’s website: http://www.imf.org/external/np/sec/pr/2008/pr08296.htm
“Amazing what threatening to lease a strategically vital airbase to the Russians will do!”
Have you’ve been experimenting with the stuff Stan is rooting for?
Grimsson’s “initiative” was ridiculous, even the Russians laughed about it. That was in the news.
Quite to the contrary, it was the unanimous pressure by all 27 nations of the EU that forced Haarde to finally accept that Iceland has to make good on its guarantee for foreign depositors. That was also in the news.
Really, you have to smoke some strong stuff to believe that in the current situation Iceland could force anyone into anything.
question?
Could you please provide me with the quote where he said this?
as in a link to where I can read this comment?
I tried our best friend Google.com, but it didn’t work…
question?
Could you please provide me with the quote where he said this?
as in a link to where I can read this comment?
I tried our best riend Google.com, but it didn’t work…
question?, can you point me at the quote of that, as in….can you provide a link where he said that?, I tried on our best friend google, but I couldn’t find it?
I can smell here, some are having a smoke. Big time!
>Amazing what threatening to lease a strategically vital airbase to the Russians will do!
Make a laughing stock – again – of Icelandic politician?
>Point; if you were to announce, on the news,that ‘Iceland is going to legalize personal possession(5 grams maximum) of weed, for 1 year’, thousands of tourists would come to Iceland.
They did that in the UK, I’m not sure it made much difference. It wouldn’t make many people travel from the UK, obviously.
Import the weed from the government in Netherlands. You of course do not use your electricity to grow it. Look; several years back, after Bob Marley(reggaee musician) died, in Jamacia, the GDP went down 10% because of his death.The gov legalized personal use of weed and the tourists flocked in by the thousands. These are not necessarily bums and back packing tourists. Middle aged and older-60 year old hippies in USA, now have the nostaglia of smoking weed and to do it legally , I am sure they would flock to Iceland. Point; if you were to announce, on the news,that ‘Iceland is going to legalize personal possession(5 grams maximum) of weed, for 1 year’, thousands of tourists would come to Iceland. This would all be government controlled, like in the Netherlands. Just follow their method.
And all that cheap elecricity for growing! I think Stan is onto something here.
Just don’t get high on your own supply.
Here is how Iceland can make tons of cash; Tell USA you have become friends with Chavez, of South America,and the USA will pay you to NOT be his friend and/or you have weed for sale, like in the Netherlands, legally. I am 100% sure that thousands of tourists will fly to Iceland, from East Coast USA and buy weed at 8 or 9 Euros a gram, as they sell in Netherlands, legally. I am sure this will stimulate your economy, immediately!-
Amazing what threatening to lease a strategically vital airbase to the Russians will do!
@ Peter – London,
Iceland is what it is, a micro nation-state.
question? said:
To summarise: Iceland is a country run by a Mafia.
Correct?
The IMF’s John Lipsky stated in regards to the 2.1 billion USD financial aid awarded to Iceland:
“Iceland faced serious challenges but that it had promising long-term economic prospects, citing its educated work force and rich natural resources”
The nation certainly has well-educated citizens, but it was this segment of society who by and large, led the nation down the economic abyss the nation finds itself in. Advancement in Iceland depends to a great deal on political patronage and even clever people are confronted by this wall. It goes without saying that government knew what was going on well before IceSave. Landsbanki in particular was viewed as the national bank of Iceland. Given the quickness and nontransparent manner of the privatisation of the finanical system in the 1990’s, it is not improbable members of the political elite also benefited on a personal level.
Transparency is not one of the strongest cards the nation has to offer. Japanese society is a suitable example of how Iceland conducts itself albeit on a much smaller scale.
If the efforts of the IMF and international donors are not to be in vain, Iceland will greatly require non-partisan technical oversight help from the fund and donor nations – this oversight is standard when the fund loans money, but donors will have to keep very close eye on policy implementation in Iceland.
A return to a free-float Icelandic krona during 2009 is certainly achievable, it wll be extremely painful for society. At least on this matter, government has been forthright about the consequences.
two-year ? so it is just delaying the problem…