The Supreme Court of Iceland has confirmed the decision of the Reykjavik District Court that foreign currency indexed loans (ruled illegal earlier this year) should now be charged the Central Bank of Iceland interest rate for non-inflation indexed domestic loans. Read the full story

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