Nov. 15 (Bloomberg) -- Iceland's loan from the International Monetary Fund will be completed Nov. 19, the head of the IMF said today in Washington.

``We will complete a program with Iceland next Wednesday at the board'' meeting, IMF Managing Director Dominique Strauss- Kahn said at a press conference after G-20 talks in Washington. ``We now have an agreement.''

While Strauss-Kahn didn't specify the size of the package or any conditions attached, Iceland made a preliminary agreement Oct. 24 with IMF staff for a $2.1 billion line of credit.

A final ruling by the IMF's executive board has been delayed for weeks. The fund said on Oct. 30 the board would consider the request Nov. 5. Then on Nov. 6, the IMF postponed the meeting until Nov. 10.

Iceland in recent days has been disputing with some members of the IMF, including the U.K. and the Netherlands, over the treatment of foreign funds frozen in Icelandic banks.

The Atlantic island, which had the fifth-highest per capita income in the world last year, needs $6 billion in IMF-led financing for imports and to create enough foreign currency reserves to support a free-floating currency.

The krona collapsed last month, and has lost more than two thirds of its value since the start of the year, following the failure and state takeover of the country's three biggest banks. The central bank tried to peg the krona to a basket of currencies on Oct. 7 and abandoned the effort the following day.

Icelandic officials are now striving to resurrect the currency through daily auctions with local banks.

To contact the reporters on this story: Christopher Swann in Washington at cswann1@bloomberg.net;

Last Updated: November 15, 2008 17:58 EST