23 October 2013


Due to media coverage in recent days and weeks concerning the Central Bank and the Government’s alleged demands in connection with the settlement of the Glitnir and Kaupthing estates, the Central Bank wishes to emphasise that no such demands have been put forward by the Bank.

Several options have been analysed within the Bank concerning possible ways to settle the Glitnir and Kaupthing estates without causing exchange rate instability or jeopardising financial stability. There are some potential options that might fulfil these criteria. No decisions have been taken in this context, and the Central Bank is therefore unable to make public statements about any specific ideas that may or may not have been discussed in this respect. It should also be emphasised that lifting the capital controls is a joint project of the Government and the Central Bank. Therefore, the Bank will not take any action in this regard without consulting with Government representatives.

As before, the Bank considers it the role of the failed banks’ winding-up committees to present proposals that fulfil the above-stated criteria. Upon receiving such proposals, the Bank will take a position on whether they are consistent with stability so that the necessary exemptions from the Foreign Exchange Act can be granted. According to the Foreign Exchange Act, the Bank is required to consult with the Minister of Finance and Economic Affairs before granting such an exemption.