Banking / Investment in Iceland
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ICELAND, 2012/12/15
Officials from Iceland’s central bank have said that interest rates could rise further to compensate for increased wage settlements. The comments via Sedlabanki governor Mar Gudmundsson, who said that although the bank could raise rates again, they were likely to remain steady in the short term.
The news comes less than a month after Sedlabanki raised the country’s primary rate by 0.25 % to six %. Officials said the move was initiated in order to compensate for inflation as a result of a 10 % slide of the Icelandic krona against the euro.
Gudmundsson told the media, “When we say that we are done with interest rate rises, then we are looking at the baseline estimate,” Reuters reports.
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ICELAND, 2012/12/15
The resolution committee of Old Landsbanki in Iceland has sold the bank’s entire stake in UK retail chain Iceland Foods.
The buyer is Oswestry Acquico, and is a company owned by Iceland Foods’ current top management and other investors.
Among the owners is the company’s founder and chairman Malcolm Walker, who had the facility to buy the company if he could match the highest outside bid; which he managed to do.
