Lánamál ríkisins - Company Announcement

Loan from Poland paid off

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
zlotys, and Iceland borrowed about a third of that amount.  The original
maturity of the loan was during the period 2015-2022. 

Icelandic Minister of Finance and Economic Affairs Bjarni Benediktsson, Central
Bank of Iceland Governor Már Guðmundsson, and Polish Minister of Finance
Mateusz Szczurek signed an amendment to the loan agreement between Poland and
Iceland, enabling the Treasury to prepay the loan from Poland. Mr. Szczurek is
in Iceland for an official visit at the invitation of the Minister of Finance
and Economic Affairs. 

“By offering Iceland a loan at a most difficult time, thereby helping us to
revitalise our country, Poland offered us a helping hand in a spirit of
friendship and generosity. Such friendship is invaluable, and the Icelandic
people wish to thank you for it,” said Bjarni Benediktsson at a meeting of the
two ministers today. 

Repayment marks a turning point

Iceland's repayment of the Polish loan marks a turning point, as it concludes
the settlement of the bilateral loans Iceland received in the wake of the
crisis. In 2014, the Treasury and the Central Bank prepaid the outstanding
balance of the loans from the Nordic countries. 

The Central Bank has already prepaid the majority of the loan from the IMF. The
remainder is due at the end of 2015 and in the first half of 2016. 
Iceland's ready access to foreign credit markets, as is evidenced by its
successful eurobond issue in 2014, together with the progress made in economic
and fiscal affairs in recent years and the improvement in Treasury performance,
has enabled the country to prepay the loans taken in the wake of the collapse
of its financial system. 

Further information can be obtained from Esther Finnbogadóttir at tel: +354 545
9200.