Landsbankinn and Central Bank sign agreement for supplemental lending
Landsbankinn and the Central Bank of Iceland have signed an agreement providing for supplemental lending to companies facing severe income declines due to the Covid-19 pandemic, subject to specific conditions.
The aim of such supplemental lending (bridge loans) is to provide companies, especially SMEs, that are facing temporary operating problems due to Covid-19, with access to liquid funds. This reduces the impact of the pandemic on industry and employment levels. The Treasury guarantee is capped at 70% of the loan principal.
Further information about supplementary loans and instructions for companies will be published to the Bank’s website shortly.
Lilja Björk Einarsdóttir, CEO of Landsbankinn “Ever since the beginning of the pandemic, Landsbankinn has focused on meeting the needs of businesses and providing assistance through the unforeseeable difficulties caused by Covid-19. The agreement with the Central Bank on supplemental lending allows us to provide even greater support to companies that fulfil the conditions during these difficult times.”