Íslandsbanki drops three court cases to speed up restructuring
After the Supreme Court judgment of 15 February 2012, 11 cases were selected by the 3 major banks to clarify issues that the Court judgment had not clarified. Four of these cases were on behalf of Íslandsbanki. As a result of the recent ruling from the Supreme Court on the 18 October, Íslandsbanki believes that most of these issues have now been resolved. The Bank has therefore discontinued three of these cases in order to speed up the recalculation of the loans that were judged to have been illegally linked to foreign currencies. Íslandsbanki will now proceed to recalculate 14,000 loans that had previously been held up.
The Bank´s assessment of the impact of the Supreme Court ruling of 15 February concluded that the impact of recalculating these loans would be a loss of ISK 12.1 billion. The Bank made a provision at year end 2011 that anticipated the impact of the court rulings so there will be no change to the Bank´s financial position as a result of this action. Íslandsbanki's total capital ratio is 23.5% - well above the minimum requirement of 16% set by the Icelandic Financial Services Authority.