Words by

Catharine Fulton

Gunnar Bragi Sveinsson, chairman of the Progressive Party, has clarified in parliament that it was never the stance of the party to retroactively abolish indexation of loans, RÚV reports.
Loans indexed to inflation, which were until recently the only type of mortgage available in Iceland, have been a hot topic in the lead up to the 27 April elections, as households struggle to keep up with loan repayments while wage increases lag behind inflation. The Progressive Party has been on the front lines of claiming to want to assist households by abolishing loan indexation. However this plan will apply only to loans taken out in the future, from the time a motion on indexation is passed in Alþingi.