Ríkisbréfum

Ríkisbréfum is an Icelandic term that translates to "government bonds" or "treasury bonds" in English. These are debt securities issued by the Icelandic government to raise capital. When the government needs to finance its expenditures, such as infrastructure projects or public services, it can borrow money by selling ríkisbréfum to investors. Investors who purchase ríkisbréfum are essentially lending money to the government for a specified period.

In return for their investment, holders of ríkisbréfum typically receive periodic interest payments, known as coupons, and the principal amount is repaid at maturity. The interest rates on ríkisbréfum can vary depending on market conditions, the issuer's creditworthiness, and the bond's maturity. Iceland, like most developed nations, uses ríkisbréfum as a tool for fiscal management and to influence monetary policy. The issuance and trading of these bonds are usually managed by the Icelandic National Treasury. They are considered a relatively safe investment due to the backing of the government, although the risk level is still present.