Press release

Norges Bank has signed lending agreement with Seðlabanki Islands

Loan agreements have today been signed between Iceland and Denmark, Finland, Norway and Sweden respectively. Under the agreements the Nordic lenders stand ready to provide Iceland with long-term loans totalling EUR 1.775 billion.

At the request of the Icelandic central bank, the Norwegian authorities approved a long-term loan in November 2008 to support Iceland’s economic stabilisation programme with the International Monetary Fund (IMF). Emphasis was placed on providing support as a joint measure with the other Nordic countries. Today’s signing of the agreements is a realisation of the Nordic countries’ pledge to support Iceland.

Norway’s share of the loan is EUR 480 million, or about NOK 4.3 billion. The loan agreement with Norway is between Norges Bank and Seðlabanki Islands, guaranteed by Iceland and Norway. The loan has a maturity of 12 years with an interest-only period of five years. Disbursement of the loan will be in four equal instalments tied to the first four reviews of Iceland’s IMF programme. The same terms apply to all the Nordic loans.

Published 1 July 2009 10:00