Long-term Market Funding

Diversified sources of funds

Glitnir´s funding strategy is designed to avoid excessive reliance on any specific investor base whether classed by market sector or geography. The bank has been well served by this strategy even in times of considerable market disruption.

Commitment to funding markets

The bank makes no distinction between markets, whether some are "core" or "non-core." Glitnir believes in making an unambiguous commitment to any market it accesses, and aims to supply benchmark transactions in a variety of maturities to the extent that it can. The majority of the bank's funding requirements lie between 3-5 years, although there are often requirements for funding outside those maturities.

Consolidated funding mix - 30.06.2008

Match-funded

The bank takes a very conservative approach to funding its assets - namely match-funding. Glitnir does not take any currency or interest rate views in any currency other than ISK.

Redemption profile

Glitnir has always preferred issuing smaller tickets with widely spread maturities in order to mitigate refinancing risk and avoiding spikes in its redemption profile.

Maturity profile of outstanding non-ISK long-term debt as of 31.07.2008

Glitnir's funding values

Diversified	Personal & Responsive	Flexible	Prudent & Predictable	Committed & Transparent
Wide geographical distribution	Personal contacts are a key ingredient	Flexible as possible with regard to choice of maturity, currency, size or structure	All products swapped to 3m floating rate	Close monitoring of secondary trading activity and performance
Debt programmes in key funding markets	Short response time on all funding enquiries		Conservative and comfortable maturity profile suppert by a strong liquidity position	Willing to support own issues as appropriate
Well distributed investor base	Well communicated funding targets		Assets are matched-funded	Repeated issuance in main markets
Contact focus on developing alternative sources of funding