Government Starts Íslandsbanki Share Sale

The Ministry of Finance and Economic Affairs has announced its third phase of Íslandsbanki’s share sale. The public is given priority in buying shares. On Thursday, May 8, Alþingi agreed on the sale unanimously. The sale started Tuesday, May 13 and ends on May 15. The priority phase includes 20% of the total shares available by the government, with a potential increase depending on the sale’s performance. The remaining shares will be offered to professional financiers and international investors.

As reported by RÚV, the government claims that by selling its remaining ownership of Íslandsbanki, it can better support infrastructure development, decrease its debt amount as well as the risk involved in having a stake in financial companies.

In 2021 and 2022, Katrín Jakobsdóttir’s government sold 35% and 22.5% of its shares, respectively. The latter sale was contested after the publication of the list of buyers, which included the father of former financial minister Bjarni Benediktsson, Íslandsbanki employees and their partners, and criminals sentenced for financial wrongdoings.

Íslandsbanki paid a fine of 1.2 billion ISK — the highest in Icelandic history. The scandal led Íslandsbanki CEO Birna Einarsdóttir and Bjarni Benediktsson to resign their respective positions.