04 March 2009

Three-month certificates of deposit issued on March 25, 2009

Central Bank of Iceland certificates of deposit (series SI 09 0325) are scheduled to mature on March 25, 2009. Outstanding CDs in the series total approximately 123 b.kr. The series was originally issued in order to increase the supply of short-term instruments on the market. Since the maturing CDs were issued, however, the Treasury has greatly expanded its issuance of Treasury bills and Treasury notes. As a result, there is less reason for the Central Bank to issue short-term instruments.

On March 25, the Central Bank will issue a three-month CD series for a maximum of 75 b.kr., with the aim of further reducing its issuance at a later time. The new series of CDs matures on June 24, 2009.
The new series will be like SI 09 0325 in all respects: interest will be paid out weekly, and the CDs can be redeemed on the Central Bank’s regular business days.

Further information can be obtained from Gerdur Ísberg, Deputy Director of the International and Market Department of the Central Bank of Iceland, at tel: +354 569-9600.

No. 9/2009
March 4, 2009