It has also put off much-needed structural reform of provincial-government finances, a commitment made by the previous government to the International Monetary Fund (IMF) as a condition of its loan agreements.

ECONOMIST: Floating or sinking? | The

The crisis in Iceland's banks forced it to borrow billions of dollars from the International Monetary Fund (IMF) - loans made on the condition that the issue of Icesave compensation would be resolved.

BBC: Iceland leader vetoes bank repayments bill

In some cases, this is a condition of international support from the likes of the International Monetary Fund.

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