News and Publications
Valuation of the New Icelandic Banks - Important Milestone
Press Release
The Icelandic Government is pleased that Deloitte LLP has delivered the valuation of the assets that were moved from the banks that failed to new state owned banks, and that Oliver Wyman has issued its independent assessment report. The Government feels that this is an important first step in recapitalising the three new Icelandic banks; Islandsbanki, New Kaupthing and NBI. The recapitalisation of the banks is then again a crucial step in revitalising the Icelandic Economy.
The Icelandic Financial Supervisory Authority (FME) will make relevant parts of the report available to the Resolution Committees, and their advisers, and grant access to members of the ICC’s who have signed appropriate undertakings.
In order to conclude the capitalisation of the banks and agree the compensation instrument, each bank is updating their business plans. A part of that process is to address asset and liability imbalances resulting from the transfer and also to take note of the output from the Deloitte valuation. There is an active dialogue with the Resolution Committees and their advisers and the ICC’s where this information will be shared and discussed, with the intention to conclude the process as quickly as possible. It is now expected that the capitalisation of the banks will take place in tandem with the overall agreement on the compensation instrument for creditors.
The Government recognizes that it is important to finalise the capitalisation as quickly as possible. However the Government also feels that it is important to ensure that the information process is fair and that the interests of all parties in this respect are recognized.
The Corporate advisory firm Hawkpoint has been engaged by the Icelandic Government to negotiate with creditors of the old banks the appropriate compensation for assets transferred from the old banks to the new banks and also to advise on the capitalisation and the imbalance issues.
Icelandic Ministry of Business Affairs
April 27, 2009
Press Contact:
Icelandic Ministry of Business Affairs – Thorfinnur Omarsson; tel:+354 8200600
Email: press@moba.is
