Íbúðalánasjóður - Company Announcement

Announcement from the Housing Financing Fund and the Welfare Ministry

The Fund is fully guaranteed by the State.



On May 29th in a Bloomberg  interview, Eyglo Hardardottir, Minister of Social
Affairs and Housing, states that it is a common project of all relevant parties
to find a solution to the Housing Financing Fund´s problems. 

Authorities must clearly solve the Fund´s problems. However, no discussions
between the Fund and the Minister have taken place. 

It is important to reiterate that the Fund is fully guaranteed by the State.
Terms on HFF-bonds will not be altered one-sidedly, i.e. without consent of
bondholders.T