18 February 2016

The final exemption for settlement of the failed banks' estates has been granted

Central Bank of Iceland

Today the Governor of the Central Bank and the Director of the Bank’s Capital Controls Surveillance Unit signed the final exemption from the Foreign Exchange Act, no. 87/1992, for the settlement of the estates of the failed commercial and savings banks on the basis of stability conditions. The Central Bank of Iceland has now granted a total of seven exemptions, including the one granted today, and has assessed the economic impact of seven composition proposals from the failed banking institutions. It is therefore clear that all of the failed banking institutions covered by stability tax legislation – eight in all – will opt to conclude composition agreements on the basis of stability conditions. One of them had already concluded a composition agreement, and one other did not require an exemption from the Foreign Exchange Act.

This outcome concludes one of the main phases of post-crisis settlement in Iceland.

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

Press release no. 5/2016
18 February 2016

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