Government statement regarding guidelines from the CBI and FME
The Central Bank of Iceland (CBI) and the Financial Services Authority (FME) have issued new guidelines for financial undertakings on the treatment of loans linked to foreign exchange rates.
Although there is still some uncertainty as to how courts will rule it is important to guarantee financial market stability. The government respects the independence of the CBI and the FME and trusts their ability to wield the authority that they are given by law. The courts will of course act as final arbiters in any legal dispute about foreign currency linked loans. Parties to such disputes do of course hold inalienable rights to seek a court ruling. It is also important that such results be obtained forthwith.