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Iceland's central bank official says bank was wrong to issue loan during banking collapse.

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Global Banking News-May 30, 2019--Iceland's central bank official says bank was wrong to issue loan during banking collapse

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Global Banking News - 30 May 2019

A director with Iceland's central bank has said that the bank was wrong to provide a loan to Kaupthing Bank during the financial crisis that gripped the nation years ago, icelandreview has reported.

Director Mar Guomundsson said that the ISK75bn loan provided to the bank was a wrong move. The bank collapsed days after receiving the loan in 2008. He however said that no laws were broken when the loan was issued.

When the bank collapsed, the issue of the loan was widely discussed and there were allegations that the processes involved in issuing the loan were opaque.

A recently published report from the central bank sought to clarify the...

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