06 May 2009

Foreign borrowings by domestic entities

The Central Bank of Iceland invites legal entities interested in borrowing funds in Icelandic krónur and repaying the loans in foreign currency to send a letter to this effect to the Central Bank no later than May 11, 2009. 

This operation will be repeated approximately one month later. The conditions upon which the Central Bank will authorise such borrowing are that they be carried out in connection with new investment  projects generating foreign exchange earnings, the loan period be at least seven (7) years and that the entity concerned will foreseeably have foreign-currency revenue in amounts sufficient to cover the payments on the loan. Correspondence related to this matter shall be directed to the Governor of the Central Bank of Iceland.

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