Information for borrowers in Grindavík

Gildi Pension Fund's board is considering how the fund can accommodate borrowers who have taken out loans from the fund secured against properties in Grindavík. At this stage, however, the fund considers it most important to provide these individuals with temporary financial flexibility amid the uncertainty that has arisen. The fund's board has therefore agreed to offer borrowers in Grindavík the option of deferring payments on their loans for 6 months.

This means that instalments on the principal, together with interest and indexation, will be deferred and will not fall due for payment during the period. Although this is a standard deferral arrangement for borrowers, the fund's board is also considering possible further measures to accommodate borrowers in Grindavík.

Considerable work has been carried out within the fund to map out the situation resulting from these unexpected events and the great uncertainty created by the ongoing seismic activity in Grindavík. Despite this, it is not yet entirely clear what authority the fund has to accommodate the borrowers concerned, as the situation remains unclear in many respects and there are many possible scenarios. In the coming weeks, the fund will monitor developments while examining its legal position regarding possible further measures to assist borrowers in Grindavík. It is not possible to say at this time what that review will produce. It should be borne in mind that pension funds are subject to specific legislation and that their operations are governed by extensive regulation. In their work, boards and staff must therefore always take into account their fiduciary duty and safeguard the interests of all fund members.

Borrowers will be informed as soon as further decisions are made. Borrowers will be contacted today and in the coming days to review the situation.