Economist Ólafur Margeirsson provides a comprehensive explanation on his blog, Icelandic Economics, of what the government's debt relief plan is all about.
Photo: Páll Stefánsson/Iceland Review.
Iceland’s Prime Minister Sigmundur Davíð Gunnlaugsson and Minister of Finance Bjarni Benediktsson presented the plan, which allows for tax relief as well as debt cancellation on indexed mortgages, on Saturday.
The cancellation of household debt was Sigmundur Davíð’s Progressive Party’s big election promise.
Read Ólafur’s article here.