Iceland: Central Bank finalizes agreement on guarantee of supplemental loans to businesses
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The Central Bank of Iceland and the Ministry of Finance and Economic Affairs have sealed an agreement on Treasury guarantees of credit institutions’ supplemental lending to businesses in response to the COVID-19 pandemic.
The scheme aims to support companies that are severely impacted by the coronavirus pandemic and the Government measures introduced to address it. Each credit institution will be able to access a specific portion of the total guarantee amount.
As conditions, the supplemental loans must be granted before the end of 2020, and the maximum term is 18 months from the date of issuance. The guarantee on any individual supplemental loan attracts a 70% cap.
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