May 27 2015
Loan from Poland paid off

This week the Republic of Iceland will prepay the loan taken from Poland in 2009, in connection with the Stand-By Arrangement with the International Monetary Fund (IMF) following the collapse of the Icelandic financial system. The prepayment amounts to 204 million zlotys, the equivalent of 7.3 billion Icelandic krónur.  The loan facility offered by Poland totalled 630 million złotys, and Iceland borrowed about a third of that amount.  The original maturity of the loan was during the period 2015-2022. 

Icelandic Minister of Finance and Economic Affairs Bjarni Benediktsson, Central Bank of Iceland Governor Már Guðmundsson, and Polish Minister of Finance Mateusz Szczurek signed an amendment to the loan agreement between Poland and Iceland, enabling the Treasury to prepay the loan from Poland. Mr. Szczurek is in Iceland for an official visit at the invitation of the Minister of Finance and Economic Affairs.

“By offering Iceland a loan at a most difficult time, thereby helping us to revitalise our country, Poland offered us a helping hand in a spirit of friendship and generosity. Such friendship is invaluable, and the Icelandic people wish to thank you for it,” said Bjarni Benediktsson at a meeting of the two ministers today.

Repayment marks a turning point

Iceland’s repayment of the Polish loan marks a turning point, as it concludes the settlement of the bilateral loans Iceland received in the wake of the crisis. In 2014, the Treasury and the Central Bank prepaid the outstanding balance of the loans from the Nordic countries.

The Central Bank has already prepaid the majority of the loan from the IMF. The remainder is due at the end of 2015 and in the first half of 2016.
Iceland’s ready access to foreign credit markets, as is evidenced by its successful eurobond issue in 2014, together with the progress made in economic and fiscal affairs in recent years and the improvement in Treasury performance, has enabled the country to prepay the loans taken in the wake of the collapse of its financial system. 

More news

Results of additional issuance of RIKB 28 1115 and RIKS 26 0216

As stated in paragraph 5 of Terms of Invitation to Tender for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 6 September, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 28 1115 but exercised their right in RIKS 26 0216 for 110 Total outstanding nominal value of RIKB 28 1115 is now 65,401,601,519 and RIKS 26 0216 is now 20,282,700,000 kr. Settlement date is 11 September 2019.

Sep 10 2019
Primary Dealers
Increased securities lending facilities to primary dealers

Government Debt Management securities lending facilities for primary dealers.

According to the Agreements concerning Secondary Market Issuance and Market making in Treasury Securities dated 14 March 2019,  securities lending in series RIKS 26 0216 to each primary dealer will be increased from 1 nominal value up to 2 nominal value. These terms shall take effect on Wednesday 11 September 2019.

Treasury Bond Auction Announcement - RIKB 28 1115 - RIKS 26 0216
Series RIKB 28 1115 RIKS 26 0216
ISIN IS0000028249 IS0000030732
Maturity Date 11/15/2028 02/16/2026
Auction Date 09/06/2019 09/06/2019
Settlement Date 09/11/2019 09/11/2019
10% addition 09/10/2019 09/10/2019

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bonds in the Series, with the ISIN number and with the Maturity Date according to the table above. Payments for the Treasury Bonds must be received by the Central Bank before 14:00 on the Settlement Date, and the Bonds will be delivered in electronic form on the same day. For an additional 10% see Article 6 of the General Terms of Auction Treasury Bonds.

For further information, please refer to the Government Debt Management website, i.e. for the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.