Repo transactions with the Central Bank of Iceland


In light of the recent request from the Central Bank of Iceland for increased
collateral from SPRON for repo transactions, SPRON would like to emphasize that
the Bank has had limited repo transactions with bonds from other financial
institutions and had already taken measures to meet this particular request. 

SPRON would also like to emphasize that domestic transactions have for a number
of years gone through the Central Bank of Iceland and not through Icebank.