The Icelandic government has delayed the proposed sale of Íslandsbanki bank which was set to take place in the coming months, RÚV reports. Market conditions and the snap election set for late November are listed as reasons for the decision.
Unanimous decision
The Icelandic state ownes a 42.5% share of the bank, which is valued at 1o0 billion ISK ($730 million, €670 million). A unanimous decision was made by the Minister of Finance and the Prime Minister to delay the sale, following a report from advisors. The team of advisors has included representatives of the banks Kvika, Barclays, Citi, and Landsbankinn, along with legal advisors.
The Minister of Finance retains the legal right to sell the state’s shares in the bank if Alþingi, Iceland’s Parliament, agrees to the sale in its budget. The state was planning to sell a half of its shares this year, with the remaining share to be sold in one or more calls for bids next year.
Controversial sale
A 22.5% share of the bank was sold by the state in 2022 and drew criticism. The Financial Supervisory Authority fined the bank 1.2 billion ISK ($8.7 million, €8 million) for violating its own internal rules and conducting improper business practices with regards to the sale.
Prime Minister Bjarni Benediktsson resigned as Minister of Finance last year when the Alþingi Ombudsman found that he had been unfit to finalise the sale, since a company owned by his father bid for its shares.
