07.10.2008

The Foreign Exchange Reserves of the Central Bank of Iceland bolstered

The Russian Ambassador to Iceland, Victor I. Tatarintsev, informed the Chairman of the Board of Governors of the Central Bank of Iceland this morning that Russia would grant the Central Bank a loan in the amount of 4 billion euros. The maturity is three to four years on terms in a range of 30 to 50 basis over libor. Prime Minister Putin has confirmed this decision.

The Icelandic Prime Minister initiated contacts concerning this agreement some months ago. Representatives from the Central Bank of Iceland and the Government will finalise the agreement in Moscow.

This loan significantly bolsters the foreign exchange reserves of the Central Bank of Iceland and thus underpins the stability of the exchange rate of the króna.

No. 31/2008

October 7, 2008

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