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FACTBOX-Global lenders IMF give aid in financial crisis

Thu Nov 20, 2008 6:57am EST
 
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Nov 20 (Reuters) - Iceland is set to receive financial aid of more than $10 billion from an International Monetary Fund-led package to rebuild its shattered financial system.

Below are details of some of the IMF's lending packages and current funding:

RECENT RESCUE PACKAGES:

* ARMENIA:

-- The IMF approved a three-year, $13.6 million loan programme to support its economy up to 2011. It allows Armenia to withdraw $1.9 million from the fund immediately.

* BELARUS:

-- Belarus is seeking a $2 billion loan in what officials have said was a "precautionary" measure against the impact of the global financial crisis. The IMF has put conditions on the issuance of any loan for Belarus, the country said last week, adding that the demands can be met.

* HUNGARY:

-- The IMF, the EU and World Bank agreed to a $25.1 billion economic rescue package for Hungary in the biggest loan for an emerging market economy since the global crisis began.

-- Hungary turned to the IMF for help in order to shore up its forint currency and markets and shield the economy from the global financial crisis.

-- The package, also taking into account Hungary's FX reserves of about 17 billion euros ($21.6 billion), was more than sufficient to cover Hungary's short-term financing need of around 32 billion euros in the next 12 months.

-- The IMF help came with conditions. It has forced the government to make additional spending cuts, including a reduction in social spending and public sector wages.

* ICELAND:

-- The IMF approved a $2.1 billion loan as part of $10.2 billion package on Wednesday, the cornerstone of international efforts to rescue Iceland.

-- Iceland said that on top of the IMF money, it would also receive $3 billion from Denmark, Finland, Norway, Sweden, Russia and Poland. The Faroe Islands will chip in with $50 million. A further Nordic $2.5 billion loan to Iceland would be split roughly between Sweden, Finland, Norway and Denmark. -- Iceland can immediately draw about $827 million from the two-year, IMF stand-by arrangement.

-- The programme demands that Iceland maintain an appropriately tight monetary policy with restrictions on capital outflow.  Continued...

 

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