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IMF to aid Iceland as anti-government protests continue

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IMF to aid Iceland as anti-government protests continue

IMF to aid Iceland as anti-government protests continue
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Icelanders furious with their politicians took to the streets of Reykjavik to call for the resignation of the government that has brought the country’s economy to the brink of collapse.

Protestors, who have gathered each Saturday over the past few weeks in growing numbers, want fresh elections and the governors of the central bank sacked. Meanwhile, the ruling Independence Party is to move its party conference from October to January to discuss EU membership.

Joining the 27-nation bloc is becoming ever more attractive as virtually everyone of 320,000 population has been affected by the crisis. The International Monetary Fund said it had reached agreement on providing a loan to Iceland and will put it to a vote next week.

The IMF had originally planned to consider Iceland’s loan request in early November, but the process was stopped after Britain and The Netherlands called for a row over deposits by their nationals to be settled first.

Its expected that inflation will rise to 20 percent in the new year and unemployment is destined to reach 10 percent by the end of the 2009.