Icelandic Bank in Foreign Ownership Skip to content

Icelandic Bank in Foreign Ownership

Íslandsbanki, formerly Glitnir Bank, will go into 95 percent ownership of foreign claimants, as Glitnir’s resolution committee announced today. The remaining five percent will be held by the Icelandic state, which will also have one board member on the bank’s five-person board.

The headquarters of Glitnir, now Íslandsbanki, in Reykjavík. Copyright: Icelandic Photo Agency.

“We celebrate this conclusion. I consider it a declaration of trust on Íslandsbanki given that the claimants’ advisors have undertaken an extensive credibility survey on the bank’s operations. It will have a positive impact on our operations and is an important part of developing a new bank,” said director of Íslandsbanki Birna Einarsdóttir, according to visir.is.

Among claimants that have acquired a share in Íslandsbanki are Japanese bank Sumitomo Mitsui, the Royal Bank of Scotland and the German HSH Nordbank and DekaBank, mbl.is reports.

It is unclear how the shares will be divided as claimants have until November 26 to make claims to Glitnir’s bankrupt estate.

The decision of Glitnir’s claimants to acquire almost the entire share capital in Íslandsbanki means that the Icelandic state doesn’t have to contribute as much as expected.

The state has contributed ISK 65 billion (USD 525 million, EUR 327 million) to the bank in the form of treasury bonds but now ISK 35-40 billion (USD 283-323 million, EUR 190-201 million) will go back to the state treasury.

It will be revealed by the end of this month whether the claimants of Kaupthing decide to acquire 87 percent in the new bank.

Click here to read more about the restoration of the Icelandic banks.

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