struck a deal with some funds earlier this month and hopes the
remainder, that between them own around $900 million worth of
Icelandic bonds or about half the original total, will also
accept now they have been given more information.
"Preparations for transactions with other owners of offshore
krónur (Icelandic crown-denominated bonds) are underway, and
further information will be forthcoming in the next few days,"
the central bank said in a statement published late on Thursday.
The funds involved in the new discussions will be given an
extended deadline, which could be up to two weeks, to accept the
The central bank's deal earlier this month bought those funds'
bonds at an exchange rate of 137.5 crowns per euro - which was a
near 20 percent discount on the current euro/crown exchange rate
of 119.10 <EURISK=>.
One heavyweight U.S. holder that has so far not accepted the
deal, Boston-based fund Loomis Sayles, has previously said it is
looking to get the current exchange rate for its bonds rather
than a poorer, discounted rate.
If it stuck to that view and continued to reject the central
bank's offer, it would mean Reykjavik effectively still had some
capital controls in place, complicating its situation.
(Reporting by Marc Jones; Editing by Jon Boyle)
[© 2017 Thomson Reuters. All rights
Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.