Iceland on Wednesday showed nervous Europe investors along with the rest of the world that it’s possible to exit successfully from supervision by the International Monetary Fund.
An IMF report on Iceland said that officials from the country met with an IMF staff team earlier this summer to discuss Iceland’s economic developments and policies.
“Iceland’s fund-supported program has been a success, and program objectives have been met,” the IMF concluded. “Recapitalization of Iceland’s core banking system has been completed. Work on reducing remaining vulnerabilities and strengthening prudential regulations and supervision is ongoing, and efforts should be sustained.”
The IMF’s executive board on Aug. 26 completed the sixth and final review of Iceland’s economic performance. The review allows for about €312.4 million, or $450.6 million, in IMF funds for Iceland, bringing total disbursements under the program to an amount equivalent to about $2.25 billion.
Iceland will spend the next three years paying off those IMF loans—and the IMF warns that Iceland’s more immediate economic problems are not resolved.