Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to
Last Published: 2/18/2019
The Icelandic domestic banking system is limited in size.  Therefore capital, at least for larger projects, usually comes from abroad.  Until capital controls are fully lifted, obtaining financing may be more difficult than before the crisis.
There are a number of U.S. agencies that might finance certain projects in Iceland, or guarantee payments in trade with goods and services, such as the Export-Import Bank.  See web resources below.

The European Investment Bank (EIB) finances private investments promoted by creditworthy counterparts established in EEA-countries.  The European Investment Fund (EIF), established in 1994, is an agency headquartered in Brussels that provides financing for SMEs (small- and medium-sized enterprises).  It does not lend money to SMEs directly; rather, it provides financing through private banks.  Its main operations are in the areas of venture capital and guaranteeing loans.  The EIF also provides guarantees to financial institutions (such as banks) to cover their loans to SMEs.  The Fund is active in the member states of the European Union, in Croatia, Turkey and three EFTA countries (Iceland, Liechtenstein and Norway).

The Nordic Investment Bank (NIB) is an investment bank and multilateral development bank owned by eight Nordic and northern European countries.  The owners are Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.  The bank is headquartered in Helsinki, Finland and has offices in Copenhagen, Oslo, Reykjavík and Stockholm, and a representative office in Singapore.  The bank has operated since 1976.  The purpose of the bank is to extend credit and finance for investment projects both within and outside the member countries.

The Icelandic government traditionally finances public sector projects although the European Investment Bank and Nordic Investment banks have played a role in financing various public projects.
 
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Iceland Market Access Project Financing