The Housing Financing Fund´s loss for the year amounted to ISK 6,904 million
according to the income statement. Equity at year-end amounted to ISK 13,285
million according to the balance sheet. The Fund´s solvency ratio, which is
calculated on the basis of Regulation no. 544/2004 for the Housing Financing
Fund, is 4.6%. The ratio is calculated on the basis of the same method as for
financial institutions. The Fund´s long term goal is to maintain an solvency
ratio exceeding 5.0%.
At year-end loans amounted to ISK 680,406 million and increased by ISK 117,379
million during the year. The Fund's borrowings amounted to ISK 708,497 million
and increased by ISK 129,749 million during the year.
The Fund´s operations were significantly adversely affected by the crisis in
the financial market prevailing during the last several months of the year
2008. The Fund had approximately ISK 16,620 million outstanding receivable from
Iceland´s three biggest banks that collapsed in early October resulting from
bonds and derivative contracts entered into with the banks. At the same time,
the Fund owed to these banks ISK 5,342 million due to derivatives and housing
bonds. In the financial statements it is presumed that the Fund has the right
to offset these balances. An impairment amounting to ISK 7,875 million has been
recognized in the income statement as an estimate of the loss. Uncertainty
prevails regarding the settlement of derivatives and Fund's right to offset
these balances. The Fund's actual loss may therefore differ from this
estimation.
For further information please phone Guðmundur Bjarnason, General Manager and
Ásta H. Bragadóttir, Assistant Manager and the number is +354 569 6900.
