Asset Management

Concerted efforts are focused on safeguarding the bank’s assets and value. A strategy has been adopted for handling each asset class. Work processes have been prepared and procedures developed to enable the most cost-effective handling of assets.

The general objective is to recover payments on loans through to maturity. Debtors’ loans are restructured if it appears evident that this will increase the amounts recovered. Opportunities to renegotiate loan terms to increase interest or shorten the repayment period are generally seized. Opportunities to sell loans on the market are examined as they arise, but efforts will be made not to sell unless a sale can be made as close as possible to nominal value.

Loan portfolios are maintained in Amsterdam, London, Canada and Iceland. The Icelandic loan portfolio consists of the loans that were not transferred to NBI in accordance with the FME's decision and due to the adoption of currency controls which prevented NBI from servicing certain loans. The London loan portfolio consist primarily of asset-backed loans, leverage lending and trade finance. The Amsterdam loan portfolio is for the most part comprised of leveraged finance. Canada, the smallest portfolio, mainly consists of lending to fisheries and seafood processors.