Lánamál ríkisins - Company Announcement

Temporary exemption from primary dealers’ secondary market obligations

Because of the uncertainty that could develop in the Icelandic bond market as a
result of the EFTA Court ruling in Case no. E-25/13 (Gunnar V. Engilbertsson
vs. Íslandsbanki hf.), which will be announced before the market opening today,
Government Debt Management (GDM) has decided to grant primary dealers a
temporary exemption from their obligations in the secondary market. On 28
August, primary dealers will not be required to submit bid and ask quotes to
the NASDAQ OMX Iceland exchange trading system with the maximum spread
specified in Article 3 of the agreement currently in effect in connection with
Treasury bond issuance and market making in the secondary market. 

GDM is authorised to revoke this exemption upon receiving the consent of the
majority of primary dealers, cf. Article 8 of the above-specified agreement. 

Further information can be obtained from Björgvin Sighvatsson, Director of
Government Debt Management, at tel +354 569 9633.

Attachments:

Temp_exemptionPD_Aug.2014.pdf