Iceland's government announced Sunday plans to balance the budget by 2013 and undertake a series of measures to restructure the Nordic island nation's beleaguered banks.

"The government's central aim is to rebalance the state budget by 2013," the newly elected government said in a general policy paper.

The left-wing coalition also announced a series of measures it will take in its first 100 days including steps to "finalise the recapitalisation and the restructuring of the banking system."