From Iceland — "Key Bill" To Be Submitted

“Key Bill” To Be Submitted

Published October 3, 2013

A bill that would enable people to surrender their property to get out of real estate debt will be submitted to parliament this autumn.
Prime Minister Sigmundur Davíð Gunnlaugsson, in his platform speech at parliament’s commencement yesterday evening, revealed that the so-called “key bill” will be submitted to parliament within the next few weeks.
This bill, if made into law, would enable homeowners who are deeply in debt on their mortgages to surrender their homes to their banks. In turn, these homeowners would be able to forgo the remainder of the mortgage without declaring bankruptcy.
The Prime Minister emphasised that this is only a temporary measure in order to “solve problems related to the consequences of the economic crash.”
In addition to the key bill, the Prime Minister added that a “special project manager” would be appointed by the government early next year to look into the issue of household debt in Iceland and improve the rental market.

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