| Summary: | This report discusses Iceland’s Second Review under the Stand-By Arrangement and Request for Extension of the Arrangement. Supportive fiscal policies have helped consumption hold up better than expected, while the external sector has benefited from currency depreciation and higher commodity prices. The overall improvements in inflation and the trade and current account balances since the late 2008 crisis have been striking. Indicators suggest firming consumer sentiment, and stable inflation expectations, but still weak business sentiment. Fiscal policy;Fiscal consolidation;Banking sector;Bank restructuring;Announcements;Credit risk;Debt sustainability analysis;Debt restructuring;Private sector;Performance criteria;Staff Reports;Iceland;Nonbank financial sector;Monetary policy;Stand-by arrangement reviews;debt, interest, central bank, external debt, public debt
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