Reykjavik : Iceland's prime minister said on Friday she was pressing the International Monetary Fund to hasten a review to determine the next batch of bailout funding for the nation's struggling economy.
The IMF had been putting off a decision on whether to release the second tranche of its $2.1 billion (Dh7.7 billion) bailout funds since last year. Iceland is worried that the money could be held up until it settles wrangling with Britain and the Netherlands over a dispute about debt repayments, but the IMF has insisted this wasn't the case.
Prime Minister Johanna Sigurdardottir said she wrote IMF director Dominique Strauss-Kahn to demand that a review on Iceland's economy take place as soon as possible.
Icesave dispute
"It is highly unusual that the Icesave dispute and the review of the IMF be tied together, and that two nations [the UK and the Netherlands] can prevent it from taking place," Sigurdardottir told national broadcaster RUV.
Iceland has not resolved a dispute with Britain and the Netherlands over the repayment of $5.3 billion to the two countries to pay off debts spawned by the collapse of Icesave, an Icelandic Internet bank that collapsed during the international financial crisis.
Talks between the three sides broke down earlier this month, and Sigurdardottir said the British and Dutch governments have not answered calls for new negotiations on Icesave to commence.
The IMF has disbursed about $1 billion to Iceland and said discussions on a second review are ongoing.
Finland, Norway and Denmark agreed to provide a further $2.5 billion to help the country recover from a deep recession.
