Bjarni Returns as Prime Minister

Prime Minister Bjarni Benediktsson

Bjarni Benediktsson, current minister of foreign affairs and leader of the centre-right Independence Party, will become prime minister in the reshuffled coalition government following the departure of Katrín Jakobsdóttir from the office, RÚV reports.

Katrín announced last week that she would resign as prime minister and leader of the Left-Green Movement to campaign for the office of president, with presidential elections scheduled for June 1. This threw the future of her party’s coalition with the Independence Party and the centrist Progressive Party into uncertainty. A parliamentary election is scheduled for September next year, but the opposition has called for a snap election in light of these developments.

Bjarni’s return following privatisation scandal

At a press conference in Harpa concert and conference hall today, Bjarni announced that he would become prime minister. Bjarni was previously prime minister during a short-lived coalition in 2017 and finance minister for most of the period from 2013 to 2023. He resigned as finance minister in October of last year after the Parliamentary Ombudsman found that his role in the privatisation process of Íslandsbanki bank, which had been nationalised after the 2008 banking collapse, had not confirmed to guidelines.

He became minister for foreign affairs instead, with fellow party member Þórdís Kolbrún Reykfjörð Gylfadóttir becoming finance minister in his stead. Þórdís will now move back to the ministry for foreign affairs, where she served previously.

Embattled Svandís switches ministries

Sigurður Ingi Jóhannsson, leader of the Progressive Party, will now become finance minister. Embattled Minister of Food, Agriculture and Fisheries Svandís Svavarsdóttir, who was set to face a motion of no confidence in Alþingi, Iceland’s Parliament, this week, will become minister of infrastructure. In January, the Parliamentary Ombudsman found that she had not acted in accordance with law when she temporarily banned whale hunting last summer.

Her fellow Left-Green Movement MP, Bjarkey Olsen Gunnarsdóttir, will take her place in the ministry of food, agriculture and fisheries.

The changes will be formalised at a meeting of the cabinet with President Guðni Th. Jóhannesson at 7 PM tonight.

Draft Bill for Íslandsbanki Stake Sale Published

Minister of Tourism, Industry, and Innovation Þórdís Kolbrún Reykfjörð Gylfadóttir

The Icelandic Ministry of Finance and Economic Affairs has published a draft bill for the sale of the state’s 42.5% stake in Íslandsbanki. The bill, necessitating parliamentary approval, aims to reduce the Treasury’s financial risk and debt ratio.

Íslandsbanki prohibited from direct participation

Yesterday, the Ministry of Finance and Economic Affairs published a draft bill regarding the disposition of the state’s share in the Íslandsbanki Bank through the government’s online consultation portal. The draft authorises the minister, with Parliament’s approval, to dispose of the state’s share in Íslandsbanki. The state owns a 42.5% stake in Íslandsbanki.

The disposal of the share is planned through one or more tranches in a marketed offering, allowing the general public to participate, with sales to individuals given priority. The draft notes that it is important to consider market conditions for timing the offerings. According to the bill, Íslandsbanki is prohibited from directly participating in the sale, in line with recommendations from the National Audit Office.

“During the sales process, care must be taken to adhere to the fundamental principles of equality, transparency, efficiency, and impartiality. This obligation is specifically imposed on the minister … to ensure transparency in connection with the disposal, among other things, by proactively publishing information,” the memorandum notes.

State Financial Investments not involved

The bill proposes eliminating the role of the State Financial Investments in the sale of the shares. The Ministry states in the bill’s explanatory memorandum that the preferred option is to authorise the sale of Íslandsbanki under the control of the Minister of Finance and Economic Affairs through specific legislation. It will be up to the Parliament to decide which sale methods are authorised.

“The sale of the equity stake is considered quite urgent in order to reduce the financial risk of the treasury and to contribute to the main objectives of the public finance policy regarding the reduction of the treasury’s debt ratio.”

As noted by RÚV, nearly eight months have passed since the release of the Financial Supervisory Authority’s critical report on the state treasury’s sale of shares in Íslandsbanki. There were several issues with the sale process, and Íslandsbanki received a hefty fine for its role in the sale. Bjarni Benediktsson stepped down as Minister of Finance and Economic Affairs after the Parliamentary Ombudsman’s opinion was published and switched ministerial roles with Þórdís Kolbrún Reykfjörð Gylfadóttir.

Iceland Drops in Corruption Rankings

Boat with Samherji Logo

Iceland is down two spots in Transparency International’s corruption rankings and now sits in 19th place. The Nordic countries, apart from Iceland, rank at the top as some of the least corrupt countries in the world, Heimildin reports.

Transparency International, a global movement to end the injustice of corruption, published its list this morning. Each country is rated on the basis of factors linked to corruption in the public sector, with 0 being the most corrupt and 100 the least corrupt. As it stands, Iceland has a rating of 72, the lowest rating it’s ever received. The country dropped two points and two spots from last year. In 2005 and 2006, Iceland ranked as the least corrupt country in the world before revelations related to the financial crash of 2008 saw it move down the list.

Samherji case highlighted

In a notice from the Icelandic office of Transparency International, a number of bribery cases, the privatisation of the publicly-owned Íslandsbanki, the Samherji bribery scandal, political uncertainty, and a corrupt fisheries system are named as examples of factors that have decreased public faith in good governance.

The Icelandic office specifically mentions the 2019 revelations that Samherji, one of Iceland’s largest seafood companies, had allegedly bribed Namibian government officials to gain access to lucrative fishing grounds, while also taking advantage of international loopholes to avoid taxes. A number of Namibian officials are already on trial for their part in the scandal, but in Iceland, no one has been charged in the four years since the story broke.

“Namibia has 49 points, unchanged from last year,” the notice reads. “The Icelandic office would like to highlight that Namibia is down three points since the Samherji case began. During the same time period, Iceland dropped six points.”

Nordics top the list

Transparency International was founded in 1992 and now operates in over 100 countries. They’re independent, non-governmental, and not-for-profit and have a vision for “a world in which government, politics, business, civil society and the daily lives of people are free of corruption”, according to their website.

Denmark is the least corrupt country according to the index, with 90 out of 100 points. Finland, New Zealand, Norway, Singapore and Sweden follow. The most corrupt country in the world is Somalia, according to the index, with South Sudan, Syria, Venezuela, Yemen and North Korea ranking just above it.

2023 in Review: Community

Kvennafrídagurinn - kvenna verkfall Arnarhóll Women's strike

As the year draws to a close, Iceland Review brings you a summary of the biggest stories in community, culture, and nature in 2023. Here are some of the political, economic, and social interest stories that most affected Icelandic communities this year.

 

Wage battle

This year started out tense for the labour movement, with Efling Union and the Confederation of Icelandic Enterprise (SA) in a wage negotiation deadlock. One-third of all labour contracts in Iceland had expired in the fall of 2022, and while most trade unions were able to reach compromises with SA in the form of shorter-term contracts, Efling Union, the country’s second-largest, held out.

In February, Efling workers voted to strike, leading to the temporary closure of several hotels and shortages of fuel at the pumps. At the height of strike actions in late February, some 2,000 Efling members were on strike. SA responded by proposing a lockout against Efling workers, which was approved in a members’ vote on February 22. Such a lockout would affect all members of Efling, around 21,000 in total, neither allowing them to show up to work, receive a wage, or accrue benefits and leave.

On March 1, the lockout was later postponed after temporarily-appointed state mediator Ástráður Haraldsson submitted a mediating proposal to SA and Efling. Efling members then voted in favour of the proposals, bringing months of tension to an end. The approved agreement is only valid until January 2024, however, and negotiations for the next one have not gotten off to a good start.

Read more about the Efling and SA collective agreement negotiations.

 

Police powers

Iceland is regularly ranked as one of the most peaceful places in the world. However, in May 2023, residents of the capital were greeted by rather unusual sights. Police officers armed with submachine guns prowled the streets, helicopters hovered overhead, and surveillance cameras kept their silent watch over downtown. These security measures were due to the Council of Europe Summit in Reykjavík, but not all of them were destined to pack up and leave alongside the private jets of world leaders. It was reported that Icelandic police would keep the additional weapons imported for the summit.

Unfortunately, 2022 proved to be a particularly violent year for Iceland, with a high-profile knife attack in a downtown Reykjavík club, a thwarted domestic terrorism plot, and four homicides (higher than the annual average of two, but not as many as in 2000, when Iceland reported a record six murders). In the wake of this violent year, Justice Minister Jón Gunnarsson declared a “war on organised crime,” the keystone of which is a sweeping package of reforms that includes provisions for increased police funding, pre-emptive search warrants, and better-armed police. For Iceland, a nation where police officers still do not carry firearms on their person, the changes are novel.

They have also not been introduced without pushback. The Icelandic Bar Association submitted many comments on the Justice Minister’s bill that would increase Icelandic police’s powers to monitor people whoa re not suspected of crimes. Later that same month, the Parliamentary Ombudsman published a legal opinion stating that Jón Gunnarsson was guilty of a lack of consultation with the cabinet when he signed an amendment to regulations, authorising Icelandic police to carry electroshock weapons. This issue in particular triggered a failed vote of no confidence in Parliament.

Read more about police powers in Iceland.

 

Regulations on asylum seekers

In the spring of 2023, after several failed attempts and harsh criticism from human rights groups, Iceland’s Parliament passed new legislation that tightens restrictions on asylum seekers. The most significant change is that people whose asylum applications have received a final rejection are now stripped of essential services unless they consent to deportation. As a result, dozens of asylum seekers unable to leave the country for reasons personal or political are being stripped of housing and services, leaving many of them on the streets.

When the legislation took effect, municipal and state authorities could not agree on who was responsible for providing for the group’s basic needs. Now it appears that municipalities will provide basic services to the group, but the state will ultimately foot the bill, in a system more costly to taxpayers than the one it has replaced. Iceland’s Justice Minister Guðrún Hafsteinsdóttir has proposed erecting detention centres for asylum seekers and stated she will introduce a bill to that effect in early 2024.

Icelandic authorities have been criticised for the deportation of many asylum seekers this year as well, and how such deportations have been handled. The country deported 180 Venezuelans back to their home country in November, where they received a cold welcome. A disabled asylum seeker left Iceland with his family this month after a ruling that his family members would be deported.

Read more about the eviction of asylum seekers from state-subsidised housing in Iceland.

 

Bjarni Benediktsson resigns

On October 10, 2023, Finance Minister Bjarni Benediktsson called a snap press conference. The call came on the heels of an opinion authored by the Parliamentary Ombudsman that concluded that the Minister of Finance’s role in the ongoing privatisation of Íslandsbanki bank – which had been nationalised following the 2008 banking collapse – had not conformed to state guidelines.

The official opinion of the Ombudsman stated: “In light of the fact that a company owned by the Finance Minister’s father was among the buyers in the sale of the state’s 22.5% share of the Íslandsbanki bank, sold in March 2022, the Minister was unfit to approve of a proposal made by Icelandic State Financial Investments (ISFI) to go ahead with the sale.”

At the press conference, Bjarni announced his decision to step down as Minister of Finance, despite his “own views, reasons, and understanding” of the Ombudsman’s opinion. Only six ministers have ever resigned from office following criticism or protest since the Republic of Iceland was established in 1944. However, the historic act was somewhat tempered when it was later announced that Bjarni would “switch seats” with Þórdís Kolbrún Reykfjörð Gylfadóttir to become Minister for Foreign Affairs while Þórdís took the position of Finance Minister. Þórdís has announced that she will move forward with selling the remainder of Íslandsbanki.

Read more about Bjarni Benediktsson.

 

Persistent inflation

As elsewhere in the world, 2023 has been marked by persistent inflation and a significant increase in the cost of living in Iceland. In an attempt to curb inflation, the Central Bank of Iceland continued raising interest rates throughout the first three quarters, to a height of 9.25% for the key interest rate. In October and November, however, it decided to keep that rate unchanged, citing economic uncertainty.

In June, Iceland’s government introduced measures to counter inflation, involving a combination of spending cuts and tax increases. The measures have yet to show a significant impact, as inflation remains high. In November, it had measured 8% over the past 12 months and risen by 0.1% in the previous month.

Food prices have risen amid inflation, with the price of perishable good rising 12.2% year over year, significantly above inflation. When the króna appreciated mid-year, the Minister of Culture and Business Affairs sought clarification from major grocery chains on why prices had not fallen. Iceland ranks third globally when terms of food prices, trailing only Norway and Switzerland.

The rising interest rates have significantly impacted the housing market and put many families in a tight spot.

 

Women’s strike draws huge crowds

On October 24, 2023, women and non-binary people in Iceland held a strike in support of gender equality that drew historic crowds. Inspired by the original 1975 “Women’s Day Off,” the aim of the protest was twofold: to call for the eradication of gender-based violence and rectifying the undervaluation of female-dominated professions.

Public gatherings were held across the country, and in Reykjavík the turnout exceeded expectations. Chief Superintendent of Reykjavík Metropolitan Police Ásgeir Þór Ásgeirsson estimated that between 70,000-100,000 people attended the event on Arnarhóll hill in the city centre.

While Women’s Strikes have been held in Iceland from time to time over the last several decades, this event was only the second full-day strike of its kind, the first one being the original historic protest in 1975. This year, even Icelandic Prime Minister Katrín Jakobsdóttir walked off the job and attended the protest. The news about the Women’s Strike in Iceland spread fast around the globe, with international media outlets reporting on the event, including the New York Times, BBC, and the Guardian.

Read more about the 2023 Women’s Strike.

New Finance Minister Þórdís Kolbrún Moves Forward with Íslandsbanki Sale

Minister of Tourism, Industry, and Innovation Þórdís Kolbrún Reykfjörð Gylfadóttir

Minister of Finance Þórdís Kolbrún Reykfjörð Gylfadóttir has recently expressed support for the continued sale of state-owned Íslandsbanki shares. RÚV reports.

Formerly Minister of Foreign Affairs, Þórdís recently switched places with Bjarni Benediktsson in the wake of his resignation from office.

Þórdís stated to RÚV that although it would be a good move for the state to divest itself of ownership in Íslandsbanki, it may be necessary to change some regulations and guidelines in light of the recent controversy.

Preparatory work underway

It has now been some nine days since Þórdís assumed her new position as Minister of Finance. She discussed the recent government changes and her priorities in the coming weeks and months on the current events talk show Silfurinn last night.

On Silfurinn, she stated that her ministry is currently working to prepare for finalising the Íslandsbanki sale and that nothing has changed regarding the goal of state divestiture in Íslandsbanki.

Þórdís stated that the state-owned shares in Íslandsbanki account for several billion ISK and that the sale is of great importance to the treasury. While not divulging details, she stated that a good price had been obtained for the sale and that the recent opinion of the Parliamentary Ombudsman would be taken into account.

“I am of the opinion that it is simply right to divest the state of its ownership in Íslandsbanki. I know there are voices out there that are concerned that it is done properly and that all the rules are followed,” she said. “Some rules need to be changed or the methodology of selling needs to change as well. It should be a completely public auction, as broad and general as possible, so the public can easily participate.”

Þórdís further stated that she hopes the work will begin as soon as possible.

 

 

Minister of Finance, Bjarni Benediktsson, Resigns from Office

bjarni benediktsson

Now-former Minister of Finance, Bjarni Benediktsson, has resigned from office following critique of his role in the March 2022 sale of Íslandsbanki shares.

Report on Íslandsbanki Sale Highlights Lack of Transparency

The Ministry of Finance issued a notice this morning of a press briefing at 10:30. Earlier this morning, the opinion of the parliamentary ombudsman had been published on the government website where it is stated that the Minister of Finance’s preparation for the privatization process of Íslandsbanki did not conform to government guidelines.

Following the 2008 banking collapse, several major banks were taken into state ownership, to later be sold off in a privatization process. The sale of shares in Íslandsbanki was criticized for a lack of transparency at the time, with special attention given to Hafsilfur ehf., a company owned by Benedikt Sveinsson, the father of the Minister of Finance. Hafsilfur was among those who purchased shares in Íslandsbanki when a 22.5 per cent stake in the bank was sold in an auction. Bjarni, now-former Minister of Finance, has stated in the past that he first learned about the company’s purchases when the ministry received a list of buyers from the State Financial Supervisory Authority after the auction had concluded.

FME Believes Íslandsbanki Broke the Law During March Sale

Skúli Magnússon, the parliamentary ombudsman has indicated that there was a lack of clarity in the preparatory documents regarding conflicts of interest. In his official opinion, the parliamentary ombudsman concluded that the Minister of Finance was not qualified to approve the sale. According to the ombudsman, it must be assumed that he had “significant and real interests in the sale.” The ombudsman also stressed that nothing has come to light that would cast doubt on the Minister’s claim of ignorance regarding Hafsilfur’s participation in the auction.

In his response to the ombudsman’s findings, Bjarni expressed his disagreement with some of the conclusions but emphasized the importance of respecting the opinion. He mentioned that the next steps would be determined in consultation with fellow Independence Party members.

Bjarni also reiterated that he had not been aware of his father’s involvement in the auction and defended his actions throughout the auction process. The sale of Íslandsbanki’s stake has had several important consequences, including one of the largest-ever fines levied on an Icelandic financial institution,  and the resignation of Íslandsbanki CEO, Birna Einarsdóttir.

Agreement Reached Between Central Bank and Íslandsbanki

During his press briefing, Bjarni stated that, given the recent opinion given by the ombudsman, he found it impossible to continue working in the Ministry of Finance. He stated that he wanted to bring peace to the ministry and that he would step down as the Minister of Finance and Economic Affairs. Bjarni stated further that he wanted to demonstrate that “responsibility came with positions of power.”

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Íslandsbanki Loses Large Customers Following Scandal

VR Union, the Icelandic Confederation of Labour (ASÍ), and the Consumers’ Association of Iceland have all discontinued their business with Íslandsbanki as a result of the bank’s mishandling of the sale of public assets last year, Vísir reports. Íslandsbanki admitted to breaching procedure and was sentenced to pay a fine of ISK 1.2 billion [$8.8 million, €8.1 million] the highest of any financial institution in Iceland’s history, for breaking regulations in the sale of a 22.5% stake in the bank in March 2022.

VR and ASÍ each made the decision to leave Íslandsbanki independently, Hjördís Þóra Sigurþórsdóttir, second vice president of ASÍ, told Morgunblaðið. She doubts the bank can make up for the breaches it committed. “We’re talking about public assets in Iceland that are being sold to hand-picked parties for less than they’re worth.”

There have been reports of individual customers also transferring their banking away from Íslandsbanki following the scandal. Íslandsbanki’s new CEO Jón Guðni Ómarsson has stated that he has not noticed a significant drop in the bank’s number of customers.

Background to the sale

In early 2020, Iceland’s government began preparation to sell the state-owned Íslandsbanki in stages. The first partial sale was carried out in June 2021, a successful public stock offering of a 35% stake in the bank. Following that sale, 65% of the bank remained state-owned.

The next stage of the sale took place in March 2022, this time a private stock offering of a 22.5% stake in the bank. Unlike the first offering, it was only open to professional investors. The sale was successful, reducing state ownership in the bank from 65% to 42.5%. The private stock offering was immediately criticised for its lack of transparency and for the discount given to investors despite high demand. As public pressure mounted, the list of investors who took part in the share was published, revealing several who had access to inside information on the sale, such as employees of the consulting company that had been hired to manage the sale as well as the father of Finance Minister Bjarni Benediktsson.

Third Executive to Leave Íslandsbanki Since Last Week

Atli Rafn Björnsson, director of business consulting at Íslandsbanki bank has left his position at the bank, RÚV reports. He is the third executive at the bank to leave his post since the middle of last week. Íslandsbanki was fined around ISK 1.2 billion last month due to breaching regulations in the sale of 22.5% of the bank last year. It is the highest fine on a financial institution in Iceland’s history.

Atli Rafn had been in his position since 2019, and will be replaced by Ellert Hlöðversson. Ásmundur Tryggvason, who was CEO of Íslandsbanki’s Business and Investment Division, also left his position last weekend, and the bank’s CEO Birna Einarsdóttir resigned last week. She was replaced by Jón Guðni Ómarsson, who stated that his priority was to restore trust in the bank following the poorly-handled private stock offering of last year.

Background to the sale

In early 2020, Iceland’s government began preparation to sell the state-owned Íslandsbanki in stages. The first partial sale was carried out in June 2021, a successful public stock offering of a 35% stake in the bank. Following that sale, 65% of the bank remained state-owned.

The next stage of the sale took place in March 2022, this time a private stock offering of a 22.5% stake in the bank. Unlike the first offering, it was only open to professional investors. The sale was successful, reducing state ownership in the bank from 65% to 42.5%. The private stock offering was immediately criticised for its lack of transparency and for the discount given to investors despite high demand. As public pressure mounted, the list of investors who took part in the share was published, revealing several who had access to inside information on the sale, such as employees of the consulting company that had been hired to manage the sale as well as the father of Finance Minister Bjarni Benediktsson.

Read More: Íslandsbanki Private Stock Offering

Left-Green Movement MP Bjarkey Olsen Gunnarsdóttir who also chairs the parliamentary Budget Committee, has demanded Íslandsbanki publish the employment termination agreement made with former CEO Birna Einarsdóttir. The chairperson of the Íslandsbanki board says the board has not discussed Bjarkey’s demand, but that it will do so. The bank has called a shareholders’ meeting for July 28.

Íslandsbanki CEO Jón Guðni Ómarsson stated that those in charge of the private share offering had now shouldered responsibility by leaving their positions and that there would be no further resignations or layoffs of executives at the bank for the time being.

New Íslandsbanki CEO Aims to Restore Trust: “Challenging Times”

CEO

The new CEO of Íslandsbanki, Jón Guðni Ómarsson, has stated that his priority is to restore trust in the bank. In an interview with RÚV yesterday, he admitted that the mood among the bank’s employees, following recent events, and in light of the public discourse, has been fraught.

“Challenging times”

On Wednesday morning, Birna Einarsdóttir, CEO of Íslandsbanki, announced her decision to step down. Birna’s resignation came on the heels of Íslandsbanki agreeing to pay a fine of ISK 1.2 billion [$8.8 million, €8.1 million] due to “serious and systematic violations” during the sale of the state’s 22.5% stake in the bank in March of last year.

At the same time, Íslandsbanki announced that Jón Guðni Ómarsson would be replacing Birna as CEO. “Naturally, these are very challenging times,” Jón Guðni told RÚV yesterday. “We need to throw ourselves back into our daily work and focus on taking care of our customers as well as we can.”

As noted by RÚV, Jón Guðni has been with Íslandsbanki for nearly two decades and served as the finance manager since 2011. Jón Guðni told RÚV that he did not participate in the sale of the government’s share in the bank. “I was introducing the bank to investors. Regarding the sale itself and the bank’s involvement in it, I did not take part.”

Jón admitted that the mood among employees, following recent events, and in light of the public discourse, has been fraught. “It has, of course, been a big shock for the employees and some customers, as well. It’s something we take very seriously and will take time to address; that’s the task that lies ahead.”

Rebuilding trust a priority

Jón Guðni admitted that he had not expected Birna Einarsdóttir to step down following the bank’s settlement with the Financial Supervisory Authority of the Central Bank (FME). This having been the case, however, it was now necessary to start repairing the bank’s reputation.

“First of all, we need to throw ourselves into implementing these changes that are requested in the agreement with the Central Bank.” One of the first issues under consideration is whether further personnel changes need to be made, although “no decisions have been made,” according to Jón Guðni. Other changes are yet to be revealed.

According to Jón Guðni, the priority is to restore customers’ trust in the bank. “First of all, it will take some time. We just need to dedicate ourselves to the project and implement these requirements requested by the Central Bank. All in all, we must show humility and roll up our sleeves,” Jón Guðni observed.

As noted by RÚV, FME’s report concluded that many of the things that went wrong at Íslandsbanki during the sale were to be ascribed to the bank’s corporate culture. Jón Guðni believes that a lot can be learned from the report while maintaining that the bank’s corporate culture is strong: “The risk and corporate culture in the bank is very strong in many respects. We simply need to ensure that this culture extends fully to all of the bank’s activities.”

Birna Einarsdóttir, CEO of Íslandsbanki, Resigns

Íslandsbanki bank

In a press release sent to the media last night, Birna Einarsdóttir announced her decision to step down as the CEO of Íslandsbanki. Birna’s resignation comes on the heels of Íslandsbanki agreeing to pay a fine of ISK 1.2 billion [$8.8 million, €8.1 million] due to “serious and systematic violations” during the sale of the state’s 22.5% stake in the bank in March last year, RÚV reports.

Shouldering responsibility

In a press release sent to the media at 4 AM tonight, Birna Einarsdóttir, CEO of Íslandsbanki, announced her decision to step down. The decision was made with “the bank’s interests in mind” and in order “for peace to be attained following Íslandsbanki’s agreement with the Financial Supervisory Authority of the Central Bank (FME).”

The resignation, Birna states, is her way of shouldering responsibility for her role in the affair. “The discussion has been unsparing and various politicians have frequently called for my resignation; I wish them well in their work,” Birna stated.

While reluctant to leave Íslandsbanki, she highlighted her long-standing commitment to the bank throughout her career, emphasising that the settlement with the Financial Supervisory Authority only pertains to a single project and the rest of her tenure has been successful.

“Under my management, the bank’s equity has increased by almost ISK 150 billion [$1.1 billion, €1.1 billion], and more than 110 billion [$810 million, €740 million] have been paid in dividends to shareholders,” Birna stated.

In her concluding remarks, Birna expressed a bittersweet farewell to the bank. She extended well wishes to her colleagues and expressed her hope that her decision to step aside would foster a sense of peace within the company and among the individuals she holds dear.

Jón Guðni Ómarsson will succeed Birna as the CEO of Íslandsbanki.

Birna’s full statement was posted on Vísir this morning.