Iceland won approval for a $2.1 billion loan from the International Monetary Fund to help resurrect the island's economy after the failure of its biggest banks and the collapse of its currency.

The country will receive $2.1 billion from the IMF with up to $3 billion in additional secured from Denmark, Finland, Norway, Sweden, Russia and Poland. The Faroe Islands will lend $50 million.

"With the IMF agreement in place, we can commence our recovery program with full force and bring our economy back on track," Prime Minister Geir Haarde said in an e-mailed statement. "I thank those countries who also contributed to the loan package."