16 December 2013

Announcement concerning planned sale of ESÍ assets

In view of the planned sale of covered bonds by the Central Bank of Iceland Holding Company ehf. (ESÍ), described in a press release published earlier today, the Central Bank of Iceland wishes to emphasise that decisions on the volume sold will be taken in consultation with the Governor of the Central Bank and the Monetary Policy Committee (MPC).

The sale of ESÍ assets could have some impact on the liquidity position of individual financial institutions and of the financial system as a whole. As always, the Central Bank will monitor financial system liquidity closely, with the aim of ensuring that the monetary stance is consistent with the decisions of the MPC and is not affected by the sale of ESÍ assets. However, the MPC will take into consideration the potential effects of ESÍ asset sales, both on the financial market and on long-term interest rates, when assessing the appropriate monetary stance at any given time.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569 9600.


No. 44/2013
16 December 2013