NIB launches SME loan facility with Iceland’s Landsbankinn

Fishing trawlers in Reykjavik harbour. Photo: Helgi Thorsteinsson / Norden.org

NIB and Iceland’s Landsbankinn hf. have launched a five-year loan facility totalling EUR 30 million for the financing of small and medium-sized enterprises (SMEs) and environmental projects in Iceland.

This is NIB’s first loan to an Icelandic bank since the country’s government began to lift the capital controls that were imposed on banks following the 2008 financial crisis.

“NIB considers this facility to be an important step to encourage SME investments in Iceland. We believe that lifting capital controls will further boost the recovery of Iceland’s economy. We think that the country’s financial authorities have taken the necessary steps to ensure the banking system will be able to withstand pressures when the controls are removed”, says Henrik Normann, NIB President & CEO.

“The conclusion of this agreement is a positive step towards building trust in international financial markets. The terms of the loan from NIB are favourable for Landsbankinn and support the Bank’s aim of decreasing financing costs and diversifying its foreign currency lender base. The Icelandic economy as a whole benefits from increased attention from international investors and access to foreign credit at favourable terms”, says Steinthór Pálsson, CEO of Landsbankinn.

Individual allocations of the funds in the facility will be selected on the basis of how well they conform to NIB’s mission to improve the competitiveness and environment of the Bank’s member countries. Eligible borrowers will be sought in various sectors, including the fishing industry, agriculture and information technology.

Established in 2008 and majority-owned by the National Treasury of Iceland, Landsbankinn is the country’s largest bank. It offers a full range of financial services.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Ms Sari Cabell, Senior Manager Origination, at +358 10 618 0519,

Mr Dimitrijs Alehins, Senior Communications Specialist, at +358 10 618 0296,