Changes to the Housing Financing Fund and the cancellation of market making and credit rating agreement
With the adoption of Act 137/2019 on the Housing and Construction Authority and the Act on the Processing of Assets and Liabilities of the Housing Financing Fund (passed in Althingi on December 17, 2019, see further Parliamentary document 381/2019), a change in the activities of the ÍL-sjóður (previously the Housing Financing Fund) is confirmed) so that the fund will no longer be an active financial institution, will not grant new loans or issue additional market bonds. The custody of the ÍL-sjóður and the responsibility for processing of the assets and liabilities of the Fund, will be transferred as of 31 December 2019 to the Ministry of Finance and Economic Affairs. Other operations of the Housing Financing Fund will be transferred to a new institution, the Housing and Construction Authority (HMS) at the same time.A service agreement will be concluded with HMS for the supervision and collection of loans belonging to the ÍL-sjóður. The HFF’s employees who have handled the Fund’s market securities will continue to handle day-to-day management of these bonds. A new telephone number will be +354 534 8050.At its meeting today, the Board of Directors of The Housing Financing Fund decided to terminate a market making agreement for the Housing Financing Fund’s marketable securities and also a credit rating agreement. The market making and the credit rating will be cancelled as of December 31, 2019. This decision is based on the aforementioned changes in the Fund’s operations and the fact that the market for HFF bonds has been very inactive in recent years, partly due to concentrated ownership.