The Minister of Social Affairs and Social Security has signed a regulation
regarding a new loan class, authorizing the Housing Financing Fund (HFF) the
granting of loans to financial institutions with the purpose of temporarily
refinancing housing mortgages, issued by these institutions. Up to ISK 30
billion will be issued in this class in the form of HFF bonds and will
exclusively be used as collateral in transactions with the Central Bank of
Iceland.
The Minister of Social Affairs will also propose a bill to Parliament at the
beginning of September 2008, suggesting HFF be given the authority to finance
and purchase new housing mortgages, issued by financial institutions. Should
the bill become a law, it is estimated that up to ISK 30 billion will be issued
for this purpose. These law amendments scheduled to take place in September
would be independent of the comprehensive revision on housing affairs, also on
the agenda at the upcoming Congress, starting in October.
The full news release is attached.
