The Organisation for Economic Co-Operation and Development (OECD) has offered advice to the Icelandic government regarding its mortgage relief efforts: target low-income households.
The OECD wrote in its annual report on Iceland that targeting households that are in real financial distress would be the most effective way to minimize the risk of default, resulting in the greatest economic benefit, The Economic Times reports. The organisation further warned that broad tax cuts could undermine public finances.
The ruling Progressive Party made household debt relief the cornerstone of their election platform prior to being elected on 27 April. The party has yet to reveal just what their debt relief plan looks like, but will be releasing details later this summer. According to the OECD report 48% of Icelandic homes have difficulty making ends meet each month.