COVID-19-related notifications

Collected together on this page are summaries of all of the Central Bank's press releases and notifications on responses to the COVID-19 pandemic, as well as links to the notifications themselves. Further actions taken by the Bank and announced on its website may be affected to some extend by COVID-19.
The Central Bank first announced changes to its operations on 10 March 2020, and a press release on the Bank's first response measures was issued a day later.

The Central Bank of Iceland's measures

15 May 2020
The Central Bank of Iceland has been entrusted with executing Treasury guarantees under a special agreement with the Ministry of Finance and Economic Affairs. To that end, the Bank has signed agreements with Íslandsbanki, Landsbankinn, Arion Bank, and Kvika banki on guarantees of supplemental bridge loans to businesses. The loans are intended for companies – primarily small and medium-sized enterprises – that are facing temporary operational difficulties as a result of the COVID-19 pandemic. Central Bank and credit institutions sign agreements on bridge loans

22. April 2020
At the beginning of May 2020, the Central Bank of Iceland will begin buying Treasury bonds in the secondary market, in accordance with the 23 March 2020 statement by the Monetary Policy Committee. Announcement on Central Bank of Iceland purchases of Treasury bonds

17 April 2020
The Central Bank decided to offer its counterparties special temporary credit facilities in the form of collateralised loans. The first auction will be held on 22 April 2020. Rules on Central Bank Facilities for Financial Undertakings amended

17 April 2020
The Ministry of Finance and Economic Affairs and the Central Bank of Iceland have signed an agreement laying down terms and conditions for Treasury guarantees of credit institutions’ supplemental lending to businesses in response to the COVID-19 pandemic. Agreement on guarantee of credit institutions’ supplemental loans to businesses

8 April 2020
The Financial Supervision Committee, Financial Stability Committee, and Monetary Policy Committee of the Central Bank issued statements following meetings held recently. Statements by the Committees of the Central Bank due to the COVID-19

27 March 2020
The Central Bank decided to reduce significantly its offerings of one-month term deposits. The next auction will be held on 1 April 2020. This decision has been made because of the radical changes that have occurred in domestic market conditions in a short period of time. Central Bank to reduce one-month term deposit supply

23 March 2020
The Monetary Policy Committee decided at an extraordinary meeting held 22 March 2020 that it would begin direct purchases of Treasury bonds in the secondary market. Statement of the Monetary Policy Committee 23 March 2020

18 March 2020
The Monetary Policy Committee (MPC) and the Financial Stability Committee of the Central Bank of Iceland issued statements following meetings held recently. The MPC has decided to lower the Bank’s interest rates by 0.50 percentage points. The Financial Stability Committee has decided to reduce the countercyclical capital buffer on financial institutions from 2% to 0%. Statements of the Monetary Policy Committee and the Financial Stability Committee

11 March 2020
The Monetary Policy Committee (MPC) of the Central Bank of Iceland decided to lower the Bank's interest rates by 0.50 percentage points. Furthermore, the Committee decided to lower deposit institutions’ average reserve requirement from 1% to 0%. Statement of the Monetary Policy Committee 11 March 2020


Statements from the Financial Supervisory Authority of the Central Bank of Iceland

21 April 2020 
A circular with recommendations to the pension market with reference to EIOPA's statement on principles to mitigate the impact of Coronavirus/COVID-19 on the occupational pensions sector. The statement can be found here. 

6 April 2020:
Statement from the European Banking Authority (EBA) on dividends distribution, share buybacks and variable remuneration. The statement can be found here.

6 April 2020:
The European Insurance and Occupational Pensions Authority (EIOPA) statement on dividends distribution and variable remuneration policies in the context of COVID-19. The statement can be found here. 

1 April 2020:
A circular with reference to EBA statement on actions to mitigate financial crime risks in the COVID-19 pandemic. The statement can be found here

18 March 2020: 
The European Insurance and Occupational Pensions Authority (EIOPA) statement on actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sector. The statement can be found here.

16 March 2020:
The EFTA Surveillance Authority decision to temporary lower the notification thresholds of net short positions. The decision can be found here. 

12 March 2020:
The European Securities and Markets Authority (ESMA) recommends action by financial market participants for Covid-19 impact. The press release can be found here