The Central Bank of Iceland was the scene of protests this morning over the Bank and the FME financial regulator’s joint proposal for how to deal with foreign currency indexed car loans, recently ruled illegal by the Supreme Court. Protesters believe the proposal is the best possible for the banks and the worst possible for indebted customers. Read the full story

The Financial Supervisory Authority and the Central Bank of Iceland have decided to issue guidelines to financial institutions due to non-binding clauses linking loans to the exchange rate. They will then present these guidelines at a joint press conference. Read the full story

The Monetary Policy Committee (MPC) has voted to lower Central Bank interest rates by 0.5 percentage points. Read the full story

The Icelandic authorities have decided to activate a currency swap agreement with Denmark, Finland, Norway, Poland and Sweden. The amount being drawn on the bilateral credit lines is EUR 639 million to be used to strengthen Central Bank of Iceland foreign currency reserves. Read the full story

The Central Bank of Iceland now owns 73 percent of the Sjova insurance company, it was revealed in parliament today. Read the full story

The Icelandic parliamentary committee looking into the recent bank crisis report has decided to forward specific feedback to the state prosecutor regarding public officials the report describes as incompetent. The move could potentially lead to criminal trials. Read the full story

The Central Bank of Iceland, on behalf of itself and the National Treasury of Iceland, has concluded an agreement with the Banque centrale du Luxembourg (BCL) and the liquidator of Landsbanki Luxembourg S.A., concerning the purchase of 98% of outstanding Avens B.V. bonds. Read the full story

Before the end of March 2008, the Central Bank of Iceland reached an loan agreement with the Bank for International Settlements (BIS) in Basel. The lending line was for USD 500 million. But the Icelandic central bank lost the funding because its staff forgot to extend the agreement – which they had to do by the end of April the same year. Read the full story

In April 2008, the then-head of the Central Bank of Iceland, David Oddsson sent a formal request to his counterpart at the Bank of England, Mervyn King, to implement a currency swap agreement between the two countries, Althingi’s new collapse report states. The request was rejected. Read the full story

The Monetary Policy Committee (MPC) has voted to lower Central Bank interest rates by 0.5 percentage points. The deposit rate (current account rate) will be lowered to 8%. The maximum bid rate for 28-day certificates of deposit (CDs) will be 9.25%. The seven-day collateral lending rate will be 9.5% and the overnight lending rate 11%. (Central Bank press release)