Iceland draws on bilateral credit agreements

SeðlabankinnThe 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.

Central Bank spokespeople would not be drawn on the reasons for the decision or its timing, but RUV reports that the bank’s monthly interest rate decision meeting is today.

The state treasury also decided yesterday to buy back government bonds to the tune of EUR 200 million.