Goodni Johansson orders the Icelandic central bank to package new measures to support the economy
Goodni Johansson orders the Icelandic central bank to package new measures to support the economy

According to the instructions issued this morning by the Icelandic government, the Central Bank of Iceland has taken executive steps and new measures to revive the Icelandic economy for fear of collapse, after the current crisis caused by the Coruna virus and affecting the economy in the country of Iceland.

On the margins of that urgent meeting, the central bank in Iceland seized these villages in order to support the economy of the country of Iceland, the purpose is to help banks and finance and finance leasing companies to overcome the repercussions of the crisis on the Icelandic economy.

According to the report by Al-Nasr newspaper correspondent published by the Icelandic central bank circulated on social media, the Icelandic central bank decided to take a set of incentive measures as follows:

1 - The Central Bank of Iceland asked all Icelandic banks to refrain from selling or implementing secured pledges against loans and financing provided to clients. This decision is excluded if a request for disposal is made by the customer in Iceland.

2- First, Iceland's base rate and discount rate was reduced by a quarter of a percentage point to 2.5% from 2.75% to promote Icelandic economic growth.

3- The average interest rate in Qatar was 2.5% compared to 2.75% in the previous version.

4 - All Icelandic banks must, at the present time, respond to all requests to postpone the payment of interest and interest / profits of loans affected by the repercussions of the current situation in the country of Iceland, especially SMEs, that period is six months with immediate effect and does not affect its credit rating.

5- Reducing overnight deposits from 3.00% to 1.50% in all banks in Iceland, and the one-month deposit rate from 2.45% to 2.20%.

6- Lending facility at 4.00% for all clients in Iceland.

7- It is allowed to exempt all loans related to the financing of government projects in Iceland for 2020 from the credit rating for a period of up to six months, according to the instructions received by the Icelandic Central Bank in the circulars issued previously in this regard.

8- Generally consider reducing the fees imposed at the present time on all banking services in Iceland and not adding any new fees during the current year 2020 AD until further notice.

9- Reducing Iceland’s interest rate on deducting government treasury bills in Iceland by 100 basis points to one percent.

10 - Reduce the Icelandic interest rate on foreign exchange swaps by 50 basis points, and raise the maximum period for currency exchanges to six months.