17.03.20
Special press release concerning issuance of Government securities

In view of recent events relating to the COVID–19 pandemic, it is foreseeable that the Treasury’s financing need will increase markedly from previous forecasts. The economic outlook for coming months is highly uncertain, and it is therefore difficult to estimate the Treasury’s borrowing need for the current year. It is also uncertain how much of that need will be for short-term borrowing and how much for long-term borrowing.

In view of recent events relating to the COVID–19 pandemic, it is foreseeable that the Treasury’s financing need will increase markedly from previous forecasts. The economic outlook for coming months is highly uncertain, and it is therefore difficult to estimate the Treasury’s borrowing need for the current year. It is also uncertain how much of that need will be for short-term borrowing and how much for long-term borrowing.

It should be noted that Iceland’s Government debt level is low. Total debt amounts to about 854 b.kr., or roughly 27.5% of GDP. No domestic issues are scheduled to mature for the remainder of 2020, and foreign maturities total only 292 million euros (45 b.kr.), due in July.

The Treasury can obtain market financing in a number of ways. It can issue more bonds in the domestic market, as issuance according to the 2020 calendar is at a historical low of about 40 b.kr. It can also issue bonds abroad. Moreover, the Treasury can address a deteriorating cash position by issuing Treasury bills or taking short-term money market loans. The Treasury’s liquidity position in Icelandic krónur currently totals 44 b.kr. Finally, the Treasury holds the equivalent of 169 b.kr. in foreign currency deposits with the Central Bank. Its position is therefore sound, and there is no reason to fear that the Treasury will be unable to handle the expected fall in revenues and increased financing need in the weeks and months to come if such expectations should materialise.

Revision of Q2/2020 issuance

  • It has been decided to increase Treasury bond issuance in Q2/2020 to a maximum of 40 b.kr. Further details will be published in the Quarterly Government Debt Management Prospect at the end of this month. This means that issuance for the year will increase substantially relative to the previously published annual Prospect.

It is difficult at present to estimate the total need for Treasury issuance in 2020. Before decisions can be made, more detailed information on the Treasury’s borrowing need is needed. The situation will be clarified in the coming weeks and months.

Further information can be obtained from Esther Finnbogadóttir at the Ministry of Finance and Economic Affairs, at tel +354 545 9200, and from Björgvin Sighvatsson at Government Debt Management, at tel +354 569 9600.

Press release (pdf)

Aðrar fréttir

Jul 10 2025
Treasury Bills
Treasury Bill Auction Announcement - RIKV 25 1119
Series RIKV 25 1119
ISIN IS0000037547
Maturity Date 11/19/2025
Auction Date 07/14/2025
Settlement Date 07/16/2025

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bills in the Series, with the ISIN number and with the Maturity Date according to the table above. Payments for the Treasury bills must be received by the Central Bank before 14:00 on the Settlement Date and the Bills will be delivered in electronic form on the same day.

Further reference is made to the General Terms of Icelandic Treasury bills and General Terms of Auction for Treasury bills on the Government Debt Management website.

For additional information please contact Magnús Freyr Hrafnsson, Government Debt Management, at +354 569 9679.

Jul 07 2025
Treasury Bonds
Market making for RIKS 29 0917 begins

Following the switch auction held on July 4, 2025, and with reference to the Primary Dealer Agreement concerning issuance of government securities and market making in the secondary market dated March 21, 2025, it has been decided to begin market making with RIKS 29 0917 from the Settlement date of the auction, i.e. July 9, 2025. Primary dealers will be obliged to submit bids and offers for a minimum nominal value of 100 m.kr. in the series. From the same date repo facilities to each primary dealer will be 2 bn.kr. nominal value.

Further information can be obtained from Government Debt Management at tel: +354 569 9994 or by email to lanamal@lanamal.is.