News and Notifications - Wednesday, June 16, 2010 6:10 PM

Statement concerning the Supreme Court's verdict in the case of SP-Fjármögnun

Today, 16 June, the Supreme Court of Iceland ruled that loans granted by SP-Fjármögnun, a subsidiary of Landsbankinn, are Icelandic loans and declared exchange rate indexation of such loans illegal. The verdict affects exchange rate indexed loans, not loans granted in a foreign currency.
The impact of the verdict on SP-Fjármögnun's assets is unclear at this stage, as no directions have been issued on how to re-calculate the loans. Some uncertainty thus still exists and it is necessary to resolve the issue promptly.
Due to the uncertainty clouding re-calculation of the exchange rate indexed loans of SP-Fjármögnun, Landsbankinn considers it important to collaborate with legislative and executive authorities - and all interested parties - towards reconciliation.
Landsbankinn remains of the opinion that its foreign currency denominated loans are in accordance with Icelandic law. While the verdict will affect the equity position of SP-Fjármögnun, Landsbankinn's position remains strong.

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