Lánamál ríkisins - Company Announcement

Terms and conditions for securities lending facilities for primary dealers

Terms and conditions for securities lending facilities for primary dealers
Central Bank of Iceland securities lending facilities for primary dealers

1. Securities available for lending
All series of Treasury bonds are eligible as loaned securities.Credit lines
shall be based on the total outstanding amount of loaned bonds in each series
at any given time, to each primary dealer. The maximum amount loaned to each
primary dealer, in each series, is 3 b.kr. nominal value. The exception to
this, however, is that the maximum loan in RIKS 21 0414 is 1 b.kr. nominal
value but rises to 2 b.kr. when the size of the issue has reached 20 b.kr.
nominal value. The loan amount for each series must be a multiple of 1 m.kr.
nominal value. Only instruments issued by the Treasury shall be considered
eligible as collateral for securities lending exceeding 1.2 b.kr. nominal
value. 

2. Commission
The commission is based on the Central Bank's policy interest rate, which is
presented as the nominal interest rate. The discount rate on securities loaned
by the Central Bank is calculated by adding a 0.10% premium to the policy
interest rate, and discount rate on collateral securities received by the Bank
is calculated by a deducting a 0.10% haircut from the policy interest rate. The
total commission is therefore 0.20% per year. 

3. Processing fee
A processing fee of 15,000 kr. is charged for each agreement concluded.

4. Entry into force and future amendments
These terms and conditions shall take effect on 6 April 2010, upon which date
the previous terms and conditions, dated 3 June 2009, shall cease to apply. The
Central Bank of Iceland reserves the right to make amendments to them. Such
amendments will be published on the NASDAQ OMX Iceland Stock Exchange news
system and on the website of the Central Bank of Iceland, under the heading
National Debt Management. 

Liitteet:

terms and condition for securities lending.pdf