The funds will be used for disbursement in four equal tranches in the context of Iceland’s economic programme with the International Monetary Fund (IMF) and under the condition that Iceland will honour its international obligations.
A joint Nordic press release states: We welcome Iceland’s Letter of Intent in connection with the second IMF-review of its economic programme, in which Iceland clearly reaffirms its commitment to honour its obligations in regard to the insured retail depositors of the intervened Icelandic banks and its preparedness to conclude – at the earliest convenience – negotiations with the Governments of the United Kingdom and the Netherlands regarding settlement of this matter. We strongly support Iceland’s continued efforts in this regard.
The Nordic countries welcome the IMF Board’s approval of the second review of Iceland’s economic stabilization and reform programme on 16 April 2010 and the broad international support thereof. We have now made the second tranche of the Nordic loans available to Iceland, the joint press release states.