Typically, a rescue by the IMF entails harsh measures to restore fiscal and monetary stability .......... the UK experienced this back in 1976 with inflation approaching 27%


Icelandic banks had expanded aggressively in the past decade with little or no government regulation

At the time of the IMF $2.1 billion rescue package last year Prime Minister Geir Haarde said at a press conference in Reykjavik

'Iceland will commit to a sustainable long-term economic policy.' and added
'There are no unacceptable conditions.'

According to David Powell, an analyst at the Bank of America, the level of funding was likely to be adequate for Iceland, provided they maintained the current capital controls they had put in place by controlling exchanges on the currency realistically for a year at least and possibly longer before they are able to do so.


The moral should be I suppose; if you don't trust someone, don't take their money!