IMF schedules fifth Iceland recovery review

The International Monetary Fund‘s Executive Board will address the fifth review of Iceland‘s Stand-By Arrangement in a meeting in April. This was announced in a statement by the IMF Mission to Iceland today. The IMF Mission visited Reykjavík during January 31 to February 12 and met with senior government officials, parliamentarians, academics, representatives of the private sector, and labor organizations.

“The Icelandic authorities and the IMF mission have held productive discussions for the fifth review of the Stand-By Arrangement,“ said Julie Kozack, head of the IMF Mission, at the conclusion of the visit. “The Icelandic economy is recovering. In 2011, GDP growth is set to turn positive for the first time since the crisis, though there is uncertainty surrounding the prospects for investment and private consumption. Inflation is projected to remain close to the central bank’s target. Public and external debt remain on a downward path, supported by the steady implementation of fiscal consolidation measures and projected improvements in the balance of payments. Reducing Iceland’s still-high unemployment remains a key challenge.“

The full statement of the IMF Mission can be read here: http://www.imf.org/external/np/sec/pr/2011/pr1139.htm

(Press release)

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