Iceland Government Launches Debt Relief Package For Households

[interestrateripoff]

http://uk.reuters.com/article/2013/11/30/uk-iceland-debt-idUKBRE9AT08Y20131130

Iceland said on Saturday it would launch a mortgage debt relief programme worth about 150 billion krona ($1.26 billion), in a move that could hurt its credit ratings and which critics say could scare off foreign investors.

Iceland is slowly recovering from its deepest ever financial crisis, but many households are saddled with mortgages they cannot afford to repay, squeezing consumer spending and economic growth.

"The plan will assist over 100,000 households," Prime Minister Sigmundur Gunnlaugsson said. "This will be the beginning of an economic renaissance."

Debt relief will apply to some 1.36 trillion krona in mortgages linked to inflation, with a maximum limit of 4 million krona per household and totalling around 80 billion krona over the four-year period of the programme.

Mortgage holders will also be given tax breaks to encourage them to use pension savings to pay down their borrowing, a measure worth about 70 billion krona.

...

Writedowns of mortgages linked to foreign currencies and other measures have already cut household debt levels by around 200 billion krona - nearly 12 percent of 2012 GDP - and the new measure will be worth an additional 9 percent of output.

However, rating agencies and the IMF have warned that with Iceland's economy still sluggish and government finances weak, there was little room for new debt relief measures.

Pensions traded to pay off the mortgage and then house sold later to pay for your pension?

Still housing is the road to wealth.

[plummet expert]

http://uk.reuters.com/article/2013/11/30/uk-iceland-debt-idUKBRE9AT08Y20131130

Pensions traded to pay off the mortgage and then house sold later to pay for your pension?

Still housing is the road to wealth.

Funny how the IMF are warning them about their schemes and saying nothing about our moronic house buying /mortgage schemes and incredible govt borrowing. Our national debt is about 1.3 trillion pounds and rising. It is more than likely that before we can get anywhere near paying it back, rather than adding to it, rates will rise and make it unservicable. ONLY because we were not in the EURO have we been able, so far, to avoid the fate of Greece and Spain. Will we avoid it altogether? It would be a surprise and very lucky indeed. The growth we are currenlt told about is phoney: the balance of payments has fallen off a cliff and a the 'surpise' fall in exports is its partner. So only the housing ponzi scheme is actually causing any of it !! I am not surprised.

[happy_renting]

"The plan will assist over 100,000 households," Prime Minister Sigmundur Gunnlaugsson said.

There's only about 300,000 people in Iceland.

Also, Iceland has a tradition of self-build.

So I find the figures for this 'mortgage debt relief programme' a little bit odd.

[Democorruptcy]

I read it as Ireland not Iceland, so wrong thread but it's debt relief

Hat tip shotoflight in the Northern Ireland section

FAMILIES have been able to keep their health insurance and a second car in some of the first debt deals agreed with banks.

The first batch of 20 cases provisionally agreed to by banks also shows that families will have thousands of euro of credit card and credit union debts written off.

Most of the people who have had deals with banks processed by personal insolvency specialists Grant Thornton Debt Solutions are in families with children and work in the PAYE sector.

And most managed to keep their homes despite having crippling debts

http://www.independent.ie/business/personal-finance/property-mortgages/families-keep-health-cover-and-second-car-in-bank-debt-deals-29783753.html

In Ireland savers pay 41% Deposit Interest Retention Tax from Jan

http://www.irishtimes.com/business/economy/savers-to-be-hit-by-increase-in-dirt-rate-to-41-1.1561545

What next? Direct transfers from savers to debtors? Bonfires to burn savers?

[SuperChimp]

What next? Direct transfers from savers to debtors? Bonfires to burn savers?

The same will happen here in the UK.

To the government everything can be sacrificed to maintain the debt ponzi.

Only way to avoid it is to move your savings out of the banking system completely.

[erat_forte]

The same will happen here in the UK.

To the government everything can be sacrificed to maintain the debt ponzi.

Only way to avoid it is to move your savings out of the banking system completely.

You have savings in the banking system?

[Eddie_George]

There's only about 300,000 people in Iceland.

Also, Iceland has a tradition of self-build.

So I find the figures for this 'mortgage debt relief programme' a little bit odd.

Yep, that's $5000 a head