Domestic Financial Situation Reviewed - The Reykjavik Grapevine

Domestic Financial Situation Reviewed

Published November 12, 2010

A work group assembled to assess in what condition the average Icelandic household is has come to some surprising conclusions.
The government work group found that there are about 73,000 households paying down homes and apartments that they’ve bought. On average, each household owes their banks about 18 million ISK.
Of these, about 11,000 households have serious problems being able to make payments. Most of these were people who bought property between 2004 and 2008.
There also seems to be a connection between to whom these households owe, and how difficult they find it to make payments. 10% of those who borrowed from a private bank have trouble paying back loans, while 6% of those who borrowed from the Housing Financing Fund face similar difficulties.
It is also noted that 80% of Icelandic households facing serious financial problems are in the capital area.

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