| Summary: | This paper examines key findings of Iceland’s Request for a Stand-By Arrangement from the IMF. Iceland’s economy is in the midst of a banking crisis of extraordinary proportions that is expected to lead to a deep recession, a sharp rise in the fiscal deficit, and a dramatic surge in public sector debt, reflecting a high fiscal cost of restructuring the banking system. The virtual collapse of the on-shore foreign exchange market poses a serious and immediate risk to the economy considering its high import dependence. Budget deficits;Banking crisis;Bank restructuring;Announcements;Exchange rate depreciation;Economic indicators;Fiscal consolidation;Fiscal sustainability;Public debt;Staff Reports;Stand-by arrangement requests;debt, central bank, interest, external debt, public sector
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