Corporate foreign exchange news

Forex dealers eye Iceland IMF pressure

Tuesday, 30 March 2010 10:01:44 GMT

Published by Zeb Bham
Iceland's krona may come under pressure in foreign exchange trading today (March 30th) as it prepares for its second International Monetary Fund (IMF) review.
Speaking to Bloomberg, the organisation's managing director Dominique Strauss-Kahn said the country may run into problems in the review due to the ongoing dispute with the UK and the Netherlands over repayments for foreign depositors who lost out in the Icelandic banking collapse.
The second review was due to take place in January but has been on hold while the three countries attempt to reach a resolution to the issue.
Mr Strauss-Kahn explained that if Iceland fails to secure majority support in the upcoming review, it may be unable to secure further funding from the IMF.
"If there is a majority, we can go forward. Myself, I think it would be useful to go forward now. But I cannot anticipate if there would be a majority," he told the news agency.
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