Agreement on the capitalisation of Islandsbanki complete
Agreement has been reached on Íslandsbanki's capital structure. Under the agreement, Glitnir banki hf. has the right to subscribe for a majority shareholding in Íslandsbanki. This is the outcome of negotiations between the government and representatives of Glitnir's creditors. This implies that Íslandsbanki might soon be fully owned by foreign parties. According to the agreement the Icelandic government will provide the Bank with new equity to begin with which the creditors will have an option to acquire before 30 September given certain conditions. Government will as well support the capital of Islandsbanki with a subordinated loan to strengthen the bank's capital ratio and liquidity.