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2010-04-15 18:07:39 CEST 2010-04-15 18:08:39 CEST REGULATED INFORMATION Íbúðalánasjóður - Financial Statement ReleaseHFF´s Annual Accounts 2009The Housing Financing Fund´s loss for the year amounted to ISK 3,202 million according to the income statement. Equity at year-end amounted to ISK 10,083 million according to the balance sheet. The Fund´s solvency ratio, which is calculated on the basis of regulation no. 544/2004 for the Housing Financing Fund, is 3.0%. The ratio is calculated on the basis of the same method as for financial institutions. The Fund´s long term goal is to maintain an solvency ratio exceeding 5.0%. The Fund, in accordance with article 7 of the regulation mentioned above, notified the Minister of Social Affairs and Social Security that the Fund's solvency ratio was heading under 4%. The Fund's management is working on ways to improve the solvency ratio so as to reach the long term goal and have already raised the interest premium on new loans. At year-end loans amounted to ISK 756,634 million and increased by ISK 76,228 million during the year. The Fund's borrowings amounted to ISK 784,570 million and increased by ISK 71,901 million during the year. The Fund's operations were significantly adversely affected by the crisis in the financial market prevailing since the last several months 2008. The Fund had approximately ISK 16,620 million in claims against Iceland's three biggest banks by the time they collapsed in early October 2008, resulting from bonds and derivative contracts entered into with the banks. At the same time, the Fund owed to these banks ISK 5,342 million due to derivatives and HFF bonds. In2009, the Icelandic Financial Supervisory Authority suspended the Board of Directors of SPRON and Straumur-Burðarás Investment Bank hf. and appointed Resolution Committees for the banks. According to the decision of the Resolution Committees, the Fund´s deposits amounting to ISK 5,254 million were withheld in closed accounts. During 2009 an impairment loss amounting to ISK 2,914 million was expensed in the income statement due to these claims. This impairment is an addition to the ISK 7,875 million recognized in the 2008 income statement as an estimate of the loss. A total of ISK 10,789 million has therefore been recognized as impairment relating to these claims. ISK 2,352 million is recognized in the line item loans to banks in the balance sheet (see note 5). In the financial statements it is presumed that the Fund has the right to off-set these balances. Uncertainty prevails regarding the settlement of claims and derivatives and the Fund's right to off-set these balances. During the year 2010 the Fund reached an agreement with SPRON, but there is still a dispute regarding the Fund´s deposits in Straumur-Burðarás Investment bank hf. The Fund´s actual loss may therefore differ from this estimation. Impairment of loans amounted to ISK 3,127 million at year-end 2009 an increase of ISK 1,462 million from the previous year. The number of loans where payments are past due has increased from the previous year and around 5.3% of the Fund's borrowers have one or more payment past due at year-end 2009. During 2009 the Fund repossessed 251 apartments on foreclosed mortgages. At year-end 2009 the Fund owned 347 apartments, an increase of 151 from year-end 2008. In 2009 around 50% of the Fund´s borrowers took advantage of their right to adjust their payments in accordance with the mortgage payment adjustment index rather than the consumer price index. This means that their payments decrease temporarily and the difference of payments goes into an adjustment account of the loan. According to the newly adjusted law regarding adjustments of mortgage payments for individuals no. 63/1985, the repayment of the adjustment debt, after the original maturity period of the loan, shall not exceed 3 years. Any debt left on the adjustment account after those 3 years shall be written off. The Fund has not evaluated possible effects of these write-offs after the extended loan period. For further information please phone Guðmundur Bjarnason, General Manager and Ásta H. Bragadóttir, Assistand Manager and the number is +354 569 6900. |
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