Landsbankinn and the Central Bank of Iceland have signed an agreement providing for supplemental lending to companies facing severe income declines due to the Covid-19 pandemic, subject to specific conditions.
The aim of such supplemental lending (bridge loans) is to provide companies, especially SMEs, that are facing temporary operating problems due to Covid-19, with access to liquid funds. This reduces the impact of the pandemic on industry and employment. The Treasury guarantee is capped at 70% of the loan principal.
Further information about supplementary loans and instructions for companies will be published to the Bank’s website shortly.
Lilja Björk Einarsdóttir, CEO of Landsbankinn: “Ever since the beginning of the pandemic, Landsbankinn has focused on meeting the needs of businesses and providing assistance through the unforeseeable difficulties caused by Covid-19. The agreement with the Central Bank on supplemental lending allows us to provide even greater support to companies that fulfil the conditions during these difficult times.