Lánamál ríkisins - Company Announcement

The upcoming auction is credit positive

The upcoming auction is credit positive insofar as it gives investors whose
money is currently trapped in offshore krónur an exit, if they so wish, and
helps relieve some of the pressure that has built up on Icelandic domestic
assets as a result of the capital controls, as reflected by a steep
appreciation of the onshore exchange rate over the past two years. The timing
is also prudent since the authorities waited to conduct the auction until they
had sufficient foreign exchange reserves to both buy the trapped assets but
still retain enough to fund the country’s potential external liquidity needs.

Attachments:

Moodys on Iceland - 30 May 2016.pdf