Iceland is among the developed countries with the least room for manoeuvre to deal with unexpected shocks to state finances, according to a new study released by the IMF. Read the full story

Embattled Gylfi Magnusson, Iceland’s trade minister, has been invited to a meeting with both government coalition parties this morning. The subject of the meeting will be foreign currency indexed loans. Read the full story

Pressure is mounting on Iceland’s Minister of Trade, Gylfi Magnusson, to resign over allegations he deliberately misled parliament a year ago. Read the full story

The head of Iceland’s FME financial regulator says it is still too early to tell if the government will need to provide financial assistance to the banks following the Supreme Court ruling that foreign currency indexed loans are illegal. Read the full story

Iceland’s minister for trade, Gylfi Magnusson, says the cautionary words from the CEO of Fitch Ratings about the Icelandic Supreme Court’s ruling that foreign currency loans are illegal do not come as a surprise. Magnusson says the uncertainty surrounding how such loans will be dealt with now is unsettling. Read the full story

The Lysing finance company has taken a case to the Reykjavik District Court claiming that the interest on foreign currency indexed car loans – which were recently ruled illegal – should be changed to the same as domestic inflation indexed car loans. 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

Iceland’s Minister of Finance insists that all deposits in Icelandic banks and savings banks are fully covered and there is absolutely no need for panic over the recent Supreme Court decision on exchange rate indexed loans, which could cost the banks billions. 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 Icelandic government met yesterday about a Supreme Court decision that foreign currency car loans are illegal. Read the full story