Icelandic government postpones sale of Íslandsbanki shares due to market conditions and elections

The sale of the Icelandic government’s shares in Íslandsbanki has been postponed. The state holds approximately 42.5% of the bank, which was expected to be sold in the coming months.

According to a statement from the Icelandic government, there was consensus among the cabinet committee on public finances, including the Prime Minister and the Minister of Finance and Economic Affairs, to delay the sale following advice from the auction’s management team. Key reasons for the postponement include current market conditions and the proximity of upcoming parliamentary elections.

The government still owns 42.5% of Íslandsbanki, valued at around 100 billion ISK. It was initially planned that about half of this stake would be sold this year, with the remainder to be offered next year, either in a single event or multiple auctions, allowing the public to purchase shares up to 20 million ISK.

The preparation for the sale is well underway, involving state advisors such as Kvika, Barclays, Citi, and Landsbankinn, along with legal counsel. According to law no. 80/2024, the Minister of Finance has the authority to allocate the state’s stake in Íslandsbanki, pending approval from the National Assembly in the budget.