- Issuance of Treasury notes and Central Bank of Iceland certificates of deposit

Today the Icelandic Government announced a supplementary issue of Treasury
notes in the domestic market, based on an authorisation granted by the
Parliament at the end of May, before the recess of the spring legislative
session. Treasury notes will be issued in series RIKB 08 1212, RIKB 09 0612,
and RIKB 10 0317 for a total of up to 75 billion krónur. More detailed
information on the issue will be published in the days to come. 

In addition, the Board of Governors of the Central Bank of Iceland has decided
to issue new certificates of deposit in September 2008, upon the maturity of
the Central Bank CDs issued in March. Decisions concerning the issuance of
certificates of deposit in 2009 will be made in view of market conditions at
that time. 

Further information can be obtained from Sturla Pálsson, Director of the
International and Market Department of the Central Bank, at tel +354 569-9600.