Recalculation of foreign currency car loans following Supreme Court ruling

  • Settlement and recalculation of car loans and hire-purchase agreements to be ready in mid-October
  • Customers can use temporary debt-relief programmes whilst awaiting new legislation
  • Íslandsbanki's capital position remains above the 16% minimum capital requirement of the Financial Supervisory Authority after the ruling

In light of the judgment passed yesterday by the Icelandic Supreme Court, Íslandsbanki has resolved to expedite work on the recalculation and settlement of foreign currency car loans, hire-purchase agreements and leases to individuals. The results of this work should be completed in mid-October in cases where the loan has not been transferred to a new borrower or paid off.

Repayments to settle loans covered by the ruling have little impact on Íslandsbanki's liquidity ratios. Our liquidity position remains strong and our liquidity ratios are well above Central Bank requirements.

Customers can use temporary debt-relief programmes while awaiting new legislation

The Minister of Economic Affairs has announced plans to enact legislation addressing the legality of foreign currency mortgages. Until this legislation is passed, Íslandsbanki encourages customers with foreign currency mortgages to avail themselves of our debt-relief programmes, in particular the option of paying ISK 5,000 a month for every ISK 1 million borrowed.

As stated in Íslandsbanki's six-month interim financial statements, the Bank has assessed the effects of various possible court decisions relating to foreign-currency loans on the Bank's capital ratio. Having reviewed the Supreme Court ruling, it is clear that the Bank will continue to meet the 16% capital ratio requirement of the Financial Supervisory Authority.

Older news

Íslandsbanki issues EUR 300m bond and announces partial buyback of its 2020 EUR 500m bond

04.04.2019 - IR Releases
Íslandsbanki has today issued a EUR 300m 1.125% fixed rate senior unsecured bond for 3 years, at a spread of 130 basis points over mid-swaps.More

Annual General Meeting 2019 - agenda, candidates and proposals

The Annual General Meeting of Íslandsbanki hf. will be held on March 21, 2019 at the Bank's headquarters, Hagasmári 3, 201 Kópavogur at 15:00.More

Publication of 2018 Annual Report and Pillar 3 Report

13.02.2019 - IR Releases
Íslandsbanki has published an Annual Report and Pillar 3 Report for 2018. More

Annual Results 2018

13.02.2019 - IR Releases
The Bank and Íslandssjóðir turned in a good operating performance during the year, with a consolidated profit of ISK 10.6bn, while operational...More

Publication of 2018 year-end results

30.01.2019 - IR Releases
Close of business Wednesday, 13 February 2019More

Íslandsbanki to terminate credit rating contract with Fitch Ratings

30.01.2019 - IR Releases
Íslandsbanki informs that following expiration and by agreement of parties, the credit rating service contract between Fitch Ratings and Íslandsbanki...More

Ásmundur Tryggvason to direct Corporate and Investment Banking

Ásmundur Tryggvason has been engaged as director of Corporate and Investment Banking at Íslandsbanki. He replaces Vilhelm Már Þorsteinsson, who will...More