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2012-01-12 17:46:35 CET 2012-01-12 17:47:37 CET REGULATED INFORMATION Lánamál ríkisins - Company AnnouncementCentral Bank of Iceland offers to purchase eurosfor long-term investment in the Icelandic economy, or in exchange for payment in Treasury bond series RIKS 30 0701. The Central Bank of Iceland is offering to purchase euros in exchange for Icelandic krónur for long-term investment in the Icelandic economy, or in exchange for payment in Treasury bond series RIKS 30 0701. The two auctions are an element in the removal of restrictions on movement of capital as set forth in the Bank's capital account liberalisation strategy of 25 March 2011, and in the Bank's Terms of foreign exchange transactions according to the Investment Programme for capital account liberalisation, dated 18 November 2011. The Central Bank is offering to purchase up to a maximum of 100 million euros in the two auctions combined. The auction amount is subject to the reservation that it is a joint amount for both auctions and may change accordingly. The Central Bank reserves the right to raise or lower the auction amount. Specified primary dealers in the bond market will act as intermediaries for transactions in the auction involving payment in Treasury bonds. A list of these primary dealers can be found on the Central Bank website. Financial institutions that have concluded a collaboration agreement with the Central Bank of Iceland may act as intermediaries (see list below) and will handle investors' applications for proposed participation in the auction according to the Investment Programme. The auction is open to investors whose applications for participation in the Investment Programme have been approved. Bids shall be submitted no later than 15 February 2012. Further information on the auctions can be found in the Terms of Auction. The objective of these measures is to sell Icelandic krónur for foreign currency to parties that have decided to invest in the Icelandic economy or in Icelandic Treasury bonds for at least five (5) years. As such, they contribute to the acquisition of economical long-term Treasury financing and thereby reduce the Treasury's refinancing need, as well as attracting foreign capital to the country for long-term investment, thus facilitating the removal of the capital controls. |
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