IMF to give €1.6bn to Iceland

Updated: 22:45, Saturday, 25 October 2008

The IMF has agreed to lend Iceland €1.6bn to restore confidence in its economy.

1 of 1 Reykjavik IMF agrees loan
Reykjavik
IMF agrees loan

The IMF has agreed to lend Iceland €1.6bn to restore confidence in its economy, which has been ravaged by the collapse of its banking system.

Iceland's financial system is close to collapse after the government was forced to take over three of its biggest banks earlier this month.

Iceland becomes the first western country to borrow from the IMF since Britain in 1976.

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