Changes to the Securities Lending Facility for Primary Dealers

As announced in the Government Debt Management Prospect in December the following changes have been made to the rules governing the Securities Lending Facility for Primary Dealers. New rules regarding service to Primary Dealers will come into effect on January 5, 2007. Former rules will expire. The following are the main changes from the earlier version: 
"	Each Primary Dealer is entitled to borrow Treasury Notes and Treasury bills for a maximum of ISK 3 billion in each series 
"	For new Treasury Note series, lending limits will be greater during the time it takes to reach benchmark size. As an example, for series RIKB 08 1212 the lending limit is now ISK 5 billion for each Primary Dealer but will be reduced with new issuance
"	Fees to NDMA will be paid at a discount rate of 0,20% p.a. for all borrowed securities

Attached are Regulations regarding Securities Lending Facility for Primary Dealers and a Fee Schedule and limits for Securities Lending Transactions.