The government of Iceland today released a statement in relation to special
actions being taken related to housing issues. The actions are intended to meet
the decreasing activities on the housing market, partly caused by liquidity
problems on the loan markets. These actions - i.e. lending to banks, savings
banks and other financial institutions for housing loans, raising the maximum
loan amount for the Housing Financing Fund (HFF), eliminating fire insurance
valuation as a reference point for the Fund's loan amounts and increasing
concessions for general loans for rental housing - will contribute to the
increase of scheduled issuance of HFF bonds. A new schedule for lending, bond
issuance and repayments by HFF in the year 2008 will be published at OMX Nordic
Exchange Iceland in July 2008.
The government's statement can be accessed in the attached document.
