Reykajvik (IFN) Iceland's largest bank Kaupthing has no major refinancing needs until the second half of 2007, when it needs to refinance EUR3 billion of debt, chief executive Hreidar Sigurdsson told Reuters.
Critics of the Icelandic banks, which have expanded rapidly abroad via debt-funded acquisitions, say that Kaupthing, Glitnir and Landsbanki Islands are overextended in terms of borrowing and with economic uncertainty sending the crown falling, could face much higher funding costs.
"We have refinanced the bank this year," Sigurdsson told Reuters.
Earlier in the day the bank reported a 70% rise in first-quarter net profit to ISK18.8 billion (USD253.4 million) and said recent turmoil in the island's equity and currency markets had not affected the bank's performance.
Icelandic Financial News (IFN) is available on Factiva, a joint venture between Reuters and Dow Jones Newswires, FT.COM, LexisNexis, Comtex, Gale and Thomson via the Nordic Business Report.