Treasury Debt Ratio Declines By 5% Upon Settlement Of HF-Fund

(MENAFN- GlobeNewsWire - Nasdaq) The proposal for the settlement of HF-Fund was presented at meetings held on 10 April 2025 with bondholders in series HFF34 and HFF44. It was approved by a majority of votes. The value of the HFF bonds in the settlement is estimated at ma.kr 651.

Thereafter, in a proposed fiscal budget supplement, authorisation for settlement was requested in accordance with the proposal. The proposed budget supplement was recently passed by Parliament.

The settlement of HF-Fund's obligations will take place on 12 June 2025. In connection with the settlement, the Treasury will issue nine new Treasury bond series (see table) with a combined nominal value of ISK 487 bn.

	Nominal value
RIKS 29 0917	67,000,000,000
RIKS 34 1016	60,353,539,382
RIKS 36 0815	59,000,000,000
RIKS 39 1115	49,000,000,000
RIKS 41 0815	50,000,000,000
RIKS 44 1017	50,313,049,596
RIKS 47 1115	48,000,000,000
RIKS 50 0915	47,000,000,000
RIKB 32 1015	56,000,000,000

With the delivery of the said bonds, the Treasury will pay in full the loans granted to it by HF-Fund in 2020 and 2021, in the combined amount of ISK 238 bn.

The Treasury will also deliver EUR 378 m (about ISK 55 bn) from foreign currency deposits financed with a recent Eurobond issue.

Upon settlement, the Treasury will receive HF-Fund ́s assets other than those used for the settlement, including The New Housing Fund bonds, as well as a loan portfolio, and bonds issued by leasing company Bríet, in the total amount of ISK 222 bn.

The net effect on the Treasury Part A debt ratio (according to Maastricht criteria) is to lower the debt ratio by just over 5% of GDP.

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