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.