Today, 24 November, the EFTA court issued an advisory opinion on CPI-linked loans to consumers. It is the role of the Icelandic courts to assess the impact of the opinion on the treatment of the case and its conclusions. The case can be expected to take 6-12 months before the courts.
If the Icelandic courts decide that the lender did not adequately inform the consumer of the effect of indexation provisions in the loan agreement, then this may have financial consequences for Arion Bank, although this would not jeopardize the Bank's financial stability. The Bank is financially strong, with equity of ISK 160 billion and a capital ratio which well exceeds the requirements made by the FME.
For further information please contact Haraldur Gudni Eidsson, Arion Bank's Communications division, haraldur.eidsson@arionbanki.is, tel: +354 856 7108.