Iceland raises interest rates to secure loan

Iceland raised interest rates to a record 18% from 12% on the 28 October 2008 as a condition of a proposed $2bn loan from the International Monetary Fund to help rescue the stricken country.

Iceland was the first industrialised country to request assistance from the International Monetary Fund (IMF) in over 30 years.

ESO: Background information: Iceland requests $2bn bail-out from IMF http://www.europeansources.info/record/iceland-requests-2bn-bail-out-from-imf/

IMF: Country Info: Iceland and the IMF http://www.imf.org/external/country/ISL/index.htm

BBC News, 28.10.08: Why raising interest rates won't work http://news.bbc.co.uk/1/hi/business/7658908.stm

Iceland: Government Offices: Press Release, 24.10.08: Iceland takes decisive action with the launch of an economic stabilisation plan in conjunction with the IMF http://eng.forsaetisraduneyti.is/news-and-articles/nr/3108

Iceland: Government Offices: Press Release, 28.10.08: Statement following the meeting of Nordic Prime Ministers 27 October 2008 http://eng.forsaetisraduneyti.is/news-and-articles/nr/3115

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