views

Exports to boost Iceland

Iceland’s government expects the economy to turn a corner in the second half of 2010 but said risks remained significant and the flow of aid from the International Monetary Fund would be crucial. "Quarterly growth should turn positive by the second half of 2010, on the back of strong export performance, but we expect the recovery to be gradual over the medium-term," the government said in a letter of intent to the head of the International Monetary Fund (IMF). On Friday, the IMF approved a long-delayed loan disbursement, releasing $160m (£104m) for the crisis hit country. The money had been held up by a dispute with the UK and the Netherlands over debts incurred during the country's banking crisis in 2008. Iceland said it will conclude negotiations with the two EU countries and honor its obligations.