Pre-selection for the tendering process
involving the sale of the assets and overtaking of the liabilities of the
Agricultural Loan Fund
Five parties announced their participation in the
pre-selection process for tenders for the acquisition of the loan portfolio and
taking over of the liabilities of the Agricultural Loan Fund prior to the
expiry of the deadline on last 5 August. The conditions for participation were as follows:
tenderer will take over the liabilities of the Loan Fund, which in the majority
of cases are guaranteed by the State.
tenderer must have a solid financial position and an international credit
tenderer must be a financial undertaking in the meaning of Sub-sections 1-3 of
Article 4 of Act No. 161/2002.
tenderer must accept the condition of honouring loan commitments already
undertaken by the Board of Directors of the Fund subject to fulfilment of
tenderer must declare, by the submission of an offer to purchase the bonds in
question, that the interest on the bonds will not be raised, nor their terms
altered to the disadvantage of debtors, beyond the scope agreed by the Board of
Directors of the Agricultural Loan Fund on taking over the loans.
tenderer must warrant that the provisions of the bonds concerning the debtor’s
option to prepay will be maintained.
tenderer must declare his intention to endeavour to provide financial services
to the agricultural sector on a commercial basis.
tenderer must declare his intention to endeavour to ensure that the employees
of the Loan Fund retain their jobs or receive comparable jobs with the
Three requests, from Kaupthing
Bank hf., Landsbanki Íslands hf. and Íslandsbanki hf., met all the above
conditions, and these banks have been invited to continue their participation
in the tendering process.
Icelandic Savings Banks Association, acting for the savings banks in Iceland,
and Icebank and MP Investment Bank did not meet all conditions and have been
denied further participation.
Reykjavík, 12 August 2005
Executive Committee on Privatisation