London: Iceland's second International Monetary Fund (IMF) review, a condition for payment of a further loan instalment, may lack sufficient support on the IMF board as a foreign depositors' dispute remains unresolved, Managing Director Dominique Strauss-Kahn said.
Iceland's second econ-omic programme review, which was scheduled to take place in January, has been on hold because of the country's dispute with the UK and the Netherlands over foreign depositor guarantees that followed the failure of lender Landsbanki Islands in Oct-ober 2008.
The government of Prime Minister Johanna Sigurdardottir is trying to resolve the so-called Icesave dispute after voters in a March 6 referendum rejected an accord accepted by the three governments. The deal focused on repayment of a $5.3 billion (Dh19.59 billion) loan to Iceland to cover UK and Dutch depositor claims and restore international investor relations. Iceland is trying to negotiate a new bill with the two countries.