From Iceland — A Ten Step Plan To Save Debt Ridden Families

A Ten Step Plan To Save Debt Ridden Families

Published June 11, 2013

New Prime Minister Sigmundur Davíð Gunnlaugsson, aims to prioritise the debt problems of Icelandic homes and has drawn up a plan in ten steps thereof.
He addressed the Parliament on Monday evening, for the first time as Prime Minister. Sigmundur intends to put forth a parliamentary resolution of a ten step plan that the new government finds essential to execute to solve the problems of Icelandic families, RÚV reports.

It involves preparations to carry out a general correction of debts; capital reduction of indexed mortgages; possible establishment of a correction fund in case other funding take too long; and to pass so called ‘turn in keys’ law, which enables debtors to walk away from their estates, and mortgages as well.

Furthermore, a group of specialists will be established, to look into abandonment of indexing consumer loans, and also a project management to oversee re-organizing of the mortgage market.

Amongst other actions planned by the new government is that court cases regarding debt of individuals, get a speedy trial. Sigmundur said all these actions were necessary and that he hoped that all parliament members would support the plan, thus show the nation that there’s consensus in Parliament for helping Icelandic families out of debts.

In his speech, Sigmundur also added that the Icelandic Króna would remain the country’s currency for unforeseeable future.

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