A CONSORTIUM of Norwegian savings banks under the Sparebank 1 umbrella yesterday announced that they were buying the Norwegian subsidiary of Iceland's troubled Glitnir Bank for 300 million kroner (US$46 million).

Glitnir Bank, Iceland's third-largest bank, went into receivership on October 8 under the Icelandic Supervisory Authority. A day later, the Norwegian Banks' Guarantee Fund granted the Norwegian subsidiary, Glitnir Bank ASA, 5 billion kroner in credit to ensure its liquidity until it could be sold.

In a statement to the Oslo stock exchange, 20 banks that also own the Sparebank 1 concern said they were buying the Norwegian unit of Glitnir and taking over its offices and 160 staff in the cities of Trondheim, Oslo, Aalesund and Fosnavaag. They were also taking over its 47 billion kroner debt portfolio.

"The Sparebank 1 banks have the strength and solidity to carry out the purchase without the need for new capital," said Terje Vareberg, managing director of the SpareBank 1 SR-Bank branch.