On the instructions of the Icelandic government, the Central Bank of Iceland has just taken new executive steps and 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 sidelines of that urgent meeting, the Central Bank of Iceland took these villages in order to support the economy of the country of Iceland, and the purpose is to help banks, finance and finance leasing companies to overcome the repercussions of the crisis on the Icelandic economy.
And according to what was monitored by “Al-Nasr newspaper” from a publication issued by the Central Bank of Iceland that was circulated on social media, the Central Bank of Iceland decided to take a package of incentive measures as follows:
1 - The Central Bank of Iceland requested all Icelandic banks to refrain from selling or implementing collateralized pledges against loans and financing operations offered to clients, and this decision is excluded if the request for disposal is submitted by the customer in Iceland.
2- First, reduce the basic interest rate in Iceland and the discount rate by a quarter of a percentage point to 2.5% from 2.75% to boost Iceland's economic growth.
3- The average interest rate in Qatar for this issue reached 2.5 percent, compared to 2.75 percent for the previous issue.
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 small and medium enterprises, and that period is six months with immediate effect and not to affect its credit rating.
5- Reducing overnight deposits from 2.00% to 1.50% in all banks in Iceland, and the interest rate on one-month deposits from 2.45% to 2.20%.
6- Lending facilities at 4.00% for all clients in Iceland.
7- All loans related to financing government projects in Iceland for 2020 are allowed to be exempt from credit rating for a period of up to six months, in accordance with the instructions received by the Central Bank of Iceland in the circulars previously issued in that 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 the interest rate in Iceland on government treasury bill deductions in Iceland by 100 basis points to one percent.
10 - Reducing the interest rate in Iceland on foreign exchange swaps by fifty basis points, and raising the maximum period for currency swap operations to six months.