Icelandic Lenders May Need to Write Off $1.2 Billion, RUV Says

Icelandic banks may have to write off a total of 145 billion kronur ($1.2 billion) following a Supreme Court ruling banning lenders from adjusting interest rates higher on foreign currency-linked loans, RUV reported.

The north Atlantic island’s banks have already written down 67 billion kronur, following the February ruling, and can absorb the shock, the state broadcaster reported, citing Unnur Gunnarsdottir, head of Financial Supervisory Authority.

All of Iceland’s lenders will continue to have capital- adequacy ratios exceeding the FSA’s 16 percent requirement, Gunnarsdottir told RUV.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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