Since 2020, the IL Fund has been undergoing a winding-up process, with the government working to create conditions that would allow for the fund’s dissolution. A proposal for the settlement of HFF bonds was presented to creditors earlier this year and received majority approval from bondholders, which also bound all holders to the agreement to exchange HFF bonds and other assets. Through this settlement, approximately 97% of the fund’s debt was resolved.
Bondholders of other liabilities were subsequently informed that they would be offered a similar exchange. The remaining liabilities primarily consist of one class of Home Bonds (Húsnæðisbréf), as well as four classes of Housing Bonds (Húsbréf), both electronic and paper-based. A bond exchange offer has now concluded, in which holders of Home Bonds were invited to exchange them for government bonds. The remaining Home Bonds are expected to be transferred to the Treasury, which will assume the associated obligations.
Additionally, IL Fund has carried out an additional Housing Bond call, in which all outstanding Housing Bonds were drawn. Authorization for this additional drawing is provided under the Housing Act No. 44/1998 and aligns with borrowers’ rights to make additional payments on their morgages prior to maturity. Prepayments of the fund’s loans have been substantial, and no additional drawing has been conducted since 2020. As stated in the announcement regarding the drawing, home bondholders may collect payments from the Financial Management A,uthority starting December 15.
With these steps, the winding-up of IL Fund is in its final stages. Remaining settlement matters will be completed in the coming weeks to allow for the winding-up of the fund. According to stock exchange regulations, issuers of listed bonds must publicly disclose financial information. However, since all liabilities of IL Fund have now been addressed, no further financial disclosures are expected in the stock exchange.
