Breaking News: Iceland entering formal negotiations with the IMF

Geir H. Haarde and Ingibjorg Solrun Gisladottir The press conference held today at 2pm Icelandic time revealed details about the discussions between the Icelandic government and the IMF delegation.

The Icelandic Prime Minister, Geir H. Haarde, stressed that Iceland should not lose its courage and its people should support each other during these difficult times.

Haarde assured Icelanders that they are not the culprits that many nations have recently been making of them and furthermore that the immense body of work up till now had been aimed towards finding solutions, not identifying culprits.

Negotiations with IMF earlier today brought the first realistic numbers which should help towards securing large injections of foreign currency into Iceland. The talks have settled on Iceland entering into formal negotiations with the IMF regarding assistance in the form of as much as 2 billion USD to stabilise the Icelandic economy.

“We do not believe the IMF will put forward unacceptable conditions,” said Haarde at the press conference. “The IMF understands the situation Iceland has found itself in and has offered to help us to rebuild the Icelandic banking system.”

Ingibjorg Solrun Gisladottir, the Icelandic Minister of Foreign Affairs, described the situation of past weeks as “the earth moving a lot under our feet“.

„It is important to re-establish the strength of the Icelandic krona and to rebuild the trust that Iceland has lost,“ she continued. Gislasdottir then said that it is essential to accept the help of the IMF, as it is an organisation that will bring an unbiased view of the situation in Iceland which will help the country to be better understood overseas.

„It is difficult to talk about the current state of the application to IMF as it needs to go through a lot of legal procedures before its approval. The management of the IMF has two to three days to decide and then it will probably take ten more days to finalise the agreement,“ said Haarde.

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