Central Bank of Iceland lost money last year

The Central Bank of Iceland lost ISK 13.5 billion last year (EUR 83.2 million). The largest part of the loss came through differing exchange rates, but operational costs were also a big factor.

This information came from Lara V. Juliusdottir, chair of the bank’s board of directors, at the Central Bank of Iceland AGM yesterday. The bank wrote off ISK 21.3 billion last year in assets from its portfolio, RUV reports.

Juliusdottir said that the bank’s poor figures were due to the write off of assets which lost their value in the banking crisis — and that successful actions to strengthen the Icelandic krona and reduce inflation in the country are expensive. But, she added, by holding large foreign currency reserves, the bank is well shielded from exchange rate changes.

Lara Juliusdottir’s full speech can be read in English here. Further details and transcripts from the AGM are available on the English Central Bank of Iceland website.

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