The first tranche of the loan from the Nordic countries, amounting to 300 million euros, was disbursed to Iceland today, in connection with the economic programme of the Icelandic Government and the International Monetary Fund (IMF).

Under the loan agreements, Iceland is authorised to draw up to 444 million euros until the Second Review of the programme, which is scheduled to take place in mid-January 2010. It was not considered necessary to draw further on the loan facility at present; therefore, 144 million euros will be carried over to the next period, which begins upon completion of the Second Review. The disbursed amount will be invested as a portion of the Central Bank of Iceland foreign exchange reserves.

The Bank’s foreign exchange reserves now total some 458 b.kr., or 2,495 million euros, which corresponds to over a year’s goods imports at the levels of the past 12 months.

Nearly 2.3 billion euros in loan facilities negotiated with the Nordic countries, the International Monetary Fund, and Poland have yet to be drawn.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569-9600.

Press release no. 39/2009 with figure (pdf)

No. 39/2009
21 December 2009