The Government of Iceland and the major shareholders of Glitnir with new equity
This action is taken in light of temporary liquidity difficulties faced by Glitnir and because of the unusually difficult situation currently reigning in the global financial market. The Government, through the intermediation of the Central Bank of Iceland, will provide Glitnir with equity amounting to 600 million euros (about 84 bn. ISK) and will own 75% of shares in Glitnir.
The Financial Supervisory Authority deems Glitnir´s capital and asset portfolio to be solid and its loan book of good quality. The capital adequacy ratio will be 14.5% after this action. The bank’s operations will be uninterrupted.
The Government does not plan to hold its share in the bank for an extended period. The purpose of this action is to enhance stability within the financial system.
Source: http://www.forsaetisraduneyti.is