Iceland and the International Monetary Fund set at positive 2-3 percent by 2010. Additionally Iceland determined that it would not support the losses of its pension funds and social service programmes in order not to take up additional obligations. One of the primary objectives of the Icelandic government in seeking an IMF programme was to stabilize the ISK and to set a path for its gradual appreciation. To stabilize short term pressures on the ISK the Central Bank of Iceland raised interest rates to 18% and prepared to back the krona with its foreign reserves, specifically for which Iceland asked for an IMF programme . The
Kingdom of Iceland in order to represent the monarchy. During the first year of World War II, Iceland strictly enforced a position of neutrality and took action against both British and German forces that violated it. On 10 May 1940, Operation "Fork" was launched by the United Kingdom when military forces sailed into Reykjavík harbour and began an invasion of Iceland. The government of Iceland issued a protest against what it called a "flagrant violation" of Icelandic neutrality. On the day of the invasion, Prime Minister Hermann Jónasson read a radio announcement instructing Icelanders to treat the British troops as guests. The Allied