02 December 2015

The underlying external position of the economy at the end of the third quarter of 2015

Central Bank of Iceland and the mountain Esja

The Central Bank of Iceland has published on its website the preliminary statistics for the balance of payments in the third quarter of 2015, and for the international investment position (IIP) at the end of the quarter.

For further information, the Central Bank also publishes an assessment of the underlying IIP, which takes account of the effects of the winding-up of the deposit institutions in winding-up proceedings based on the position during the quarter and book value of assets according to the winding-up boards’ accounts. Until the courts have evaluated the composition agreements of the deposit institutions in winding-up proceedings, there will be some uncertainty about how the settlement of the estates ultimately affects the IIP. Whether the entities concerned conclude composition agreements and pay a stability contribution or instead pay a stability tax, it is clear that their winding-up will have a considerable impact, which will show as a reduction in Iceland’s external liabilities and therefore a more favourable IIP than calculations indicate.

See the full press release here: The underlying external position at the end of Q3