Saturday, October 16, 2010
Debts to be written off
Icelandâ€™s pension funds, which hold the bonds behind most of the countryâ€™s mortgage debt, will try to block proposals to forgive as much as $2 billion in bad loans that the government says it is considering. A group that represents households demanding debt relief says lenders should write off up to 220 billion kronur ($1.99 billion) in mortgage loans to help the 39 percent of homeowners who are technically insolvent. The government this week said it may back the proposal.