The EFTA Surveillance Authority (ESA) has today concluded that the decision by
the then Board of Directors of New Glitnir to acquire assets from a money market
fund is compatible with EEA agreement. As stated in their release, ESA considers
that the measures at issue were necessary in order to try to restore faith in
the financial sector. It was in that regard necessary and proportionate to
protect the investors from even bigger losses on their savings.
The ESA conclusion includes eight investment funds operated by the subsidiaries
of the three commercial banks. The banks acquired assets held by eight
investment funds for a total of ISK 82.2 billion, thereof 75.4% was acquired by
New Landsbanki, 15.4% by New Glitnir (now Íslandsbanki), and 9.2% by New
Kaupthing (now Arion banki) according to a press release from ESA in September
2010.
When the financial crisis hit Iceland in early October 2008, the investment
funds deferred the redemption of equity certificates in order to ensure
equality. The funds were subsequently dissolved and owners of equity
certificates were paid. This happened partly by the banks acquiring assets
(mostly domestic assets) held by the funds based on commercial grounds.. Assets
that were purchased were evaluated in a professional manner in times of great
uncertainty. The price paid for the assets was determined by the board of the
new banks based the valuation of external consultants (audit firms).
On 27 June 2012, ESA also concluded that the measures taken in 2008, when
Íslandsbanki was established on the domestic operations of its predecessor New
Glitnir and received support from the Icelandic State, as compatible with the
EEA agreement.
Birna Einarsdóttir, CEO of Íslandsbanki:
"Two important milestones have been reached in removing uncertainties in the
Bank's operations with these two recent ESA conclusions. Íslandsbanki was the
first bank in Iceland to receive ESA approval on the Bank's restructuring. Now
we also have confirmation that the measures taken in 2008, in order to secure
the interest of approximately 9,000 customers, were compatible with EEA
regulation."
For further information:
* Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
+354 440 3187.
* Media Relations - Guðný Helga Herbertsdóttir,
gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 440 3678 / mob:
+354 844 3678.
[HUG#1625998]
Islandsbanki hf. : Measures regarding money market funds compatible with EEA agreement
| Source: Íslandsbanki hf.