Today, the Minister of Agriculture Guðni Ágústsson and
Minister of Finance Árni M. Mathiesen, acting for the State of Iceland, signed
a purchase agreement with Landsbanki Íslands hf. on the acquisition by the bank
of specific assets and liabilities of the Agricultural Loan Fund. The Purchase
Agreement was concluded on the basis of an offer made by Landsbanki Íslands on
30 September, the highest of three offers submitted.
The purchase price amounts to ISK 2,653 billion and
payment should be effected on the delivery of the sold property, following an
approval by the Financial Supervisory Authority and the Competition Authority.
The arranger of the sale on behalf of the State of
Iceland was the Executive Committee on Privatisation, with Ráðgjöf og
Efnahagsspár acting as the Committee’s principal advisor.
Reykjavík, 4 October 2005
Executive Committee on