Lánamál ríkisins - Company Announcement

Measures taken on bond market

As is stated in the 25 March press release from the Ministry of Economic
Affairs, the capital account liberalisation process aims to minimise the
negative impact on the bond market. In view of this, Government Debt Management
(GDM) has made an agreement with the primary dealers that GDM will keep a close
watch on bond market developments and will support the market with the purchase
and/or sale of Treasury bonds on Monday 28 March, if deemed necessary. In
addition, GDM and primary dealers have made an agreement where parties that
purchase foreign currency in upcoming Central Bank of Iceland auctions can sell
the Treasury their Treasury bills and bonds maturing before year-end 2013 so as
to finance the purchases. 
The purpose of this is to counteract the volatility and uncertainty that may
develop in the market. 

Further information can be obtained from Ingvar H. Ragnarsson at the Ministry
of Finance, at tel +354 545 9200, and from Björgvin Sighvatsson at Government
Debt Management, at tel +354 569 9633.