Iceland and the International Monetary Fund Intent. The conditionalities include details of Banking Sector restructuring, changes to Fiscal Policy including government austerity and changes to exchange rate policies. Following the global financial crisis in 2007-2008 Iceland's banking sector collapsed leading to wide ranging unemployment and a lessening of support for the Icelandic currency - the Icelandic Krona ISK. This was triggered by an insolvency of the private banking sector. The largest Icelandic banks had liabilities in excess of 80 percent of GDP . Iceland requested assistance from the IMF and from its Nordic partners in the Nordic Council. The goal of Iceland in this market intervention
Iceland and the International Monetary Fund Iceland and the International Monetary Fund Iceland is an arctic island nation in the North Atlantic ocean with a population of 352,000 and a GDP of 23.91 billion USD (2017) according to World Bank . Iceland joined the IMF on Dec 27th, 1945, becoming one of the IMF’s founding members. As a part of the IMF, Iceland has rights in accordance with its contributions, borrowing rights which help facilitate the stability of global financial markets. Iceland’s quota is 321.8 million SDR, and its Special Drawing Rights are 112 million. This is a relatively small quota and its vote share comprises