This week the Republic of Iceland will prepay the loan taken from Poland in 2009, in connection with the Stand-By Arrangement with the International Monetary Fund (IMF) following the collapse of the Icelandic financial system. The prepayment amounts to 204 million złotys, the equivalent of 7.3 billion Icelandic krónur. The loan facility offered by Poland totalled 630 million złotys, and Iceland borrowed about a third of that amount. The original maturity of the loan was during the period 2015-2022.
Statistics for Treasury finances for January-February 2015 are now available.
During the first quarter of 2015, the Central Bank of Iceland (the “Bank”), which manages borrowing on behalf of the Treasury, purchased for cancellation nominal value of USD 97,465,000 in the bond series “ICELAND 4.875% 06/16/16” (ISIN USX3446PDH48/US451029AD49).
The formation of this government of the Progressive Party and the Independence Party begins a new advance for the country and its people. The government's prime concerns are to improve the situation of households in Iceland and to strengthen business and industry, with greater value creation for the common good.
The government will seek to mobilise the strength of national unity and overcome the antagonism and suspicion which has characterised Icelandic politics and public debate for some time. Progress and an improved standard of living in Iceland depend on cooperation and cohesion, and in the years to come Icelanders will continue to jointly resolve the nation's main challenges co-operatively.
Through its actions the government also intends to eliminate the political uncertainty which has been too conspicuous in Iceland in recent years. Efforts will be directed at achieving a broad reconciliation with the social partners on labour market developments and future investment. It is a prerequisite for Iceland to enter a new era of growth and stability that its economy enjoy trust once more both at home and abroad. This reinforces the foundation of welfare and creates the conditions for improved household economy.