Foreign Debt "More Than We Can Manage" - The Reykjavik Grapevine

Foreign Debt “More Than We Can Manage”

Published February 17, 2009

Economist Haraldur L. Haraldsson, speaking at a townhall-style meeting
at the University of Iceland theatre, told those in attendance that
foreign debts have become “more than we can manage” and believes that
government should re-examine whether or not Icelandic taxpayers should
pay for the money banks owe to parties overseas.
“The foreign debts of the old banks has become more than the Icelandic economy can manage.” It has been proposed that the government pay down the interest on the debts of these banks. “If this is done, it will lead to deep cuts in the social safety net. We need this money, and if we have it to spare we should use it to build up our future,” adding that another part of the problem is that these debts are expected to be paid in currency other than the crown.
“I submit that the government re-think its position on this matter and that those who bear responsibility, take responsibility.”
According to Morgunblaðið, Icelandic debts to clients overseas total over a trillion crowns, or over 8 billion USD.

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