Cyprus-Forum.com

[Archimedes]

Iceland to write €24,000 off every household mortgage

THE ICELANDIC GOVERNMENT has announced that it will write off household mortgage debt in order to kickstart the economy.

Under the plan, every household in the country will have €24,000 worth of debt written off.

The move was part of the election manifesto of the Progressive Party, led by Prime Minister Sigmundur David Gunnlaugsson.

The idea will cost the country €1.2 billion and will begin in mid-2014. Iceland has been burdened with debt since the 2008 financial crisis, which saw the krona collapse.

A government statement said that the plan would kick-start consumer spending.

“Currently, household debt is equivalent to 108 per cent of GDP, which is high by international comparison.

“The action will boost household disposable income and encourage savings.”

The plan has been criticised by the IMF, the OECD and various economists, with the IMF saying that the country has “little fiscal space” for the move, while the OECD says the plan should be limited to low income housing.

The measure has improved the country’s rating with Standard & Poor’s, who upgraded the economic outlook from negative to stable.
http://www.thejournal.ie/iceland-goes-a ... 0-Dec2013/

[GreekIslandGirl]

This *country* is a joke. Can we give it over to Polar Bears, please?

[Demonax]

Actually this has proved a successful scheme. Instead of bankruptcy, dispossession and unemployment they have turned their economy around with increased economic growth whereas Greece, Cyprus and other Med countries are looking to repossess people's homes, with their economies stuck for years in recession and increased unemployment.

Unemployment in Iceland has halved to 5 per cent since they introduced mortgage debt relief. People now have a job, and they pay income and property taxes.

This should be a lesson to the spineless Southern Europeans who would be wise to follow the Iceland example.

[GreekIslandGirl]

No one wants to live in Iceland. They need incentive.

Furthermore, the main difference is that most Cypriots and Greeks do not have mortgages. The ones who would benefit (at the expense of the country) are those with huge mortgages which tend to be second-home owning Brits and Russians.

[Paphitis]

No one wants to live in Greece or Cyprus because there is no incentive!

Yeh, I sure as hell going to bring my familky over and be unemployed and to give my kids a second rate education!

[Paphitis]

DP...

[Demonax]

No one wants to live in Iceland. They need incentive.

Furthermore, the main difference is that most Cypriots and Greeks do not have mortgages. The ones who would benefit (at the expense of the country) are those with huge mortgages which tend to be second-home owning Brits and Russians.

The debt relief was targeted at Icelandic firms and households not overseas property buyers!

[Paphitis]

No one wants to live in Iceland. They need incentive.

Furthermore, the main difference is that most Cypriots and Greeks do not have mortgages. The ones who would benefit (at the expense of the country) are those with huge mortgages which tend to be second-home owning Brits and Russians.

The debt relief was targeted at Icelandic firms and households not overseas property buyers!

[Flying Horse]

A lot of countries in Europe could well learn from Icelands book. After how many are brave enough to throw out their politicians and head of bank, and give the people a say?

There has been great contreversy for sure, not everything has worked and old politicians back. In this case power to the people has turned round the country, as opposed to austerity and putting the thumb screws on its inhabitants.

At the moment for instance, the UK is a joke, turning the poor and jobless into unpaid slaves by new work schemes, the seriously sick and disabled made to look for work, neglect of our elderly....the list goes on. The government is totally atrocious and only seeks to make the rich benefit from anything. Greece and Cyprus aren't much better with their EU thumbscrews.

The world is perhaps a little afraid of Icelands radical reasonings, because what happens if it works?

[B25]

I read that the uk now has retirement age 69? Or are looking to change to that...