Iceland IMF package on firm ground, government less firm

Iceland’s Minister of Finance says that the country’s IMF recovery package is still on course to conclude this autumn.

Steingrimur J. sigfusson also told reporters that possible options to strengthen the government majority in parliament have been discussed but no concrete decisions made or formal negotiations with other parties initiated.

Following the resignation of three Left Green MPs from the parliamentary Left Green Movement and their subsequent support for the recent vote of no confidence against the government, the coalition enjoys a majority of just one MP, RUV reports. When asked, he said that there are currently no plans to try and incorporate The Movement’s members of Althingi into the government; but that all options are on the table. The government still holds a majority and survived the vote of no confidence which means there is no remedy necessary in the very short term, he added.

In the meantime, an IMF delegation arrived in Iceland yesterday evening in preparation for the Fund’s fifth evaluation of its Iceland recovery package. The leader of the delegation told Reuters that there are signs of economic recovery in Iceland and the Minister of Finance told RUV that the IMF package is still on course. The fifth IMF Iceland report is expected in mid-May.

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