28 August 2020

Special temporary collateralised lending framework for COVID support loans

Central Bank of Iceland

As is mentioned in the Central Bank press release of 24 June 2020, the Bank will offer commercial banks and savings banks special collateralised loans bearing a 100% Treasury guarantee, in connection with COVID-related support loans. The collateralised loans will be offered beginning on 2 September 2020. Until another decision is forthcoming, these special collateralised loans will be offered by auction once a month, on the first Wednesday of each month.

The loans will be granted at the Central Bank’s key interest rate, currently 1%, against collateral deemed eligible for Central Bank facilities at any given time. In accordance with the above, the Bank will temporarily update its list of securities eligible as collateral and will make temporary amendments to the Rules on Central Bank of Iceland Facilities for Financial Undertakings, no. 1200/2019.

Press release no. 27/2020
28 August 2020