Iceland's losses soar on back of writedowns

The Central Bank of Iceland made a Ikr8.63 billion ($69m) loss in 2008 after it wrote off Ikr75 billion ($607m) in collateral loans following the collapse of the country's banking sector.

The figure - more than seven times greater than the Ikr1.22 billion ($9.97m) loss recorded for 2007 - came despite the central bank's coffers being boosted by a Ikr43.9 billion ($358m) exchange-rate gain owing to the krona's depreciation.

The original size of the collateral-loan writedowns was Ikr345 billion