The Icelandic Financial Services Association (SFF) draws attention to the fact that Icelandic financial undertakings are as of 1 July obliged to withhold a 20% capital income tax upon payment or availability for payment of financial income. This change primarily affects financial income from securities, debentures in collection and receivables that have been accumulating interest before 1.1.2010.  Financial income on bank deposits has been paid on a yearly or monthly basis and no changes will apply to taxation of this income.

Iceland maintains that it did not fail to comply with its obligations under Directive 94/19/EC. Government is also optimistic that depositor claims will be paid in full from estate of failed Landsbanki.

Moody's has today affirmed Iceland's Baa3 longt-term ratings and their negative outlook, as well as the P-3 rating for short-term debt.

Iceland's S&P ratings are BBB- for long-term obligations in foreign currency and BBB for long-term obligations in ISK with a negative outlook.

Fitch notes that while Icesave has tended to dominate the credit outlook, it is important not to overlook broader macroeconomic improvements.

The Government states that the outcome will not affect the commencement of payments by the estate of  Landsbanki Íslands hf. to priority claimants.

The Icesave agreement was rejected by approximately 60% of Icelandic voters.

The strategy does not include a timeline. The pace  will depend on relevant economic conditions and on the outcome of previous steps in liberalization.

The approval opens IMF disbursement of USD160m and approximately EUR1bn in loans from the Nordic countries and Poland.

The Agreement applies where continued operations of SMEs are deemed by lenders to best serve the interest of creditors, employees and owners.

The agreement promotes financial system stability and bolsters Central Bank's non-borrowed foreign exchange reserves.

The Central Bank concluded agreements concerning debt of five savings banks that did not meet minimum capital adequacy requirements.

The loans of the three new banks are assessed at purchase value but Central Bank is also compiling data on the nominal value.

Total write-downs of auto loans and leases to individuals are expected to reach ISK 44.5 billion following the verdict of the Supreme Court.

Deposit rate is also lowered to 3.5%, max. bid rate of 28-day CDs to 4.25% and overnight lending rate to 5.5%.

Banks and savings banks have introduced 20 different solutions to assist homes with payment difficulties.

Guðjón Rúnarsson, Managing Director of SFF gave a speech on the past, present and future of the Icelandic financial system.

Statement is given in order to explain the policy framework and current intentions regarding the removal of capital controls.

Deposit rate is also lowered to 4.0%, max. bid rate of 28-day CDs to 5.25% and overnight lending rate to 7.0%.

The review is scheduled to be discussed by the IMF‘s Executive Board on September 29.

Iceland supreme court attorney Felix Harðarson has been hired as moratorium administrator.

After consulting with financial institutions, the Central Bank has adopted Rules on the Foreign Exchange Market. The Rules, which take effect tomorrow, assume that financial institutions will become market makers in the foreign exchange market. Emphasis will be placed on creating the most effective market possible, with the most effective price formation possible.

CEA, the European insurance and reinsurance federation has released 8 key messages on the impact the financial turmoil will have on insurance companies. Read more

The three main goals of the economic program are to restore confidence in the Icelandic economy and stabilise the Icelandic krona through a comprehensive and strong macro-economic program and implement a sound banking strategy to re-establish a viable banking system to support the Icelandic economy.

The Icelandic FSA has appointed a winding-up committee which now wields all the authority of the board of directors. The aim of these actions is to ensure adequate activities of the bank in Iceland and the stability of the Icelandic financial system. The bank's branches in Iceland will be open as usual, and it is hoped that the bank's clients will be inconvenienced as little as possible by these changes.

Standard & Poor´s lowered today Iceland´s credit rating for long- and short term liabilities in foreign currency to A-/A-2 from A/A-1 and in Icelandic krónas to A+/A-1 from AA-/A-1+ with negative outlook.

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To faciliate wage agreements concluded in Iceland 17 February 2008 the Icelandic Government announced series of actions to be taken in the near future, such as lowering the corporate income tax rate from 18 to 15 percent, defining duties of the public sector in regards to housing policy and abolishing stamp duty tax on mortgages for first time buyers.

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