Iceland, whose economy has been crippled by the credit crisis, will unveil an IMF-led rescue package:
The IMF is expected to contribute just over $1bn with central banks from the Nordic region and Japan contributing the rest, the Financial Times reported on its website.
It is unknown whether Russia, which has been wavering over making a loan to Iceland, will participate.
If Iceland accepts help from the IMF, it will be the first Western nation to go cap-in-hand to the fund since Britain's humiliating loan in 1976.
Pakistan, another nation whose economy is crumbling, will ask the IMF for a $10 billion loan.