Iceland Gets $4.6 Billion Bailout From IMF, Nordics

Iceland got a $4.6 billion bailout from the International Monetary Fund and four Nordic countries to help resurrect the island's economy after the failure of its biggest banks and the collapse of its currency, Bloomberg reported today. The Washington-based IMF approved a $2.1 billion loan late yesterday. Finland, Sweden, Norway and Denmark will provide a further $2.5 billion, the Finnish Finance Ministry said in a statement today. Approval of the loan dragged out after Iceland was unable to reach agreement with U.K. and Dutch officials on how to cover foreign deposits held at one of the island's bankrupt lenders, Landsbanki Islands hf. The country struck a deal ending that dispute on Nov. 16. Today's loan won't be used to repay depositors in the Internet unit, known as Icesave, Prime Minister Geir Haarde has said. The IMF said that $827 million of its loan would be made available immediately and the rest in eight installments of about $155 million, subjected to quarterly reviews. Read more.