New Supreme Court ruling on illegal loans in foreign currencies
Yesterday the Supreme Court in Iceland passed a ruling that affects how banks in Iceland have recalculated loans that are illegally linked to the value of foreign currencies. The ruling will now be reviewed by the Bank.
The Bank made an assessment after the Supreme Court ruling on 15 February and concluded that the impact of recalculating these loans would be a loss of ISK 12.1 billion. The Bank recognised a provision at year end 2011 and the annual report therefore reflect the impact of the court rulings. Íslandsbanki's total capital ratio is strong or 23,5% which is well above the minimum requirement of 16% set by the Icelandic Financial Services Authority.