Iceland state asset sale could save billions

Iceland plans major state asset sales that could cut national debt by one trillion krónur and slash interest costs. The proposal includes selling all government shares in Landsbankinn bank and nearly half of Landsvirkjun power company. This continues Iceland's push to privatize state-owned enterprises and reduce financial burdens.

Iceland may sell state shares in five major companies. This includes all government holdings in Landsbankinn bank and nearly half of Landsvirkjun power company. The sale could reduce national debt by about one trillion Icelandic krónur. It would also cut annual interest payments by almost half. The CEO of one major investment firm confirmed these estimates. Iceland's Independence Party has submitted a bill to authorize the sales. The process would mirror last year's Íslandsbanki privatization. Analysts value the state's Landsbankinn stake at over 350 billion krónur. Another investment firm is considering a stock market listing within weeks. It plans to raise billions from new investors. Four financial firms are already advising on this potential offering. These moves show Iceland accelerating its privatization program. The government clearly wants to reduce debt servicing costs while attracting foreign investment.