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2010-08-09 12:01:44 CEST 2010-08-09 12:02:42 CEST REGULATED INFORMATION Íbúðalánasjóður - Company AnnouncementInterest Rate DecisionAccording to paragraph 3, Article 21 of the Housing Act No. 44/1998, including later amendments and Article 14 of Regulation No. 522/2004, on HFF mortgages and bonds, the Board of the Housing Financing Fund has the authority to determine the interest rates on HFF bonds based on financing cost from regular auctions of HFF bonds on the one hand and on the weighted average financing cost of prepaid loans on the other, in addition to an interest premium. HFF's interest rate decision is based on the yield at the HFF bond auction held on August 6th in addition to the weighted financing cost of prepayments on HFF bonds. The weighted interest rate for the auction and prepaid HFF bonds is 3.58%. HFF´s board suggested a 0.10% increase in the interest rate premium to the minister of social affairs and social security. This was approved by the minister and hence the premium for operations will be 0.45%, 0.45% for credit risk and 0.50% for prepayment risk. As a result of the auction and the change in premium, the HFF has decided to leave interest rates on housing loans including a prepayment clause unchanged at 4.50% and 5.00% on loans excluding such a clause. This decision takes effect today, August 9th 2010. |
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