Following yesterday’s Supreme Court ruling that interest rates on currency loans, which have been deemed illegal, will not be based on the Central Bank’s inflation-adjusted interest rates, matters pertaining to businesses must be addressed, says Vilhjálmur Egilsson, chairman of The Confederation of Icelandic Employers. It is evident that the results will not be beneficial for all. Ruv.is reports this today.
Vilhjálmur Egilsson. Photo by Geir Ólafsson.
Egilsson calls the elimination of uncertainty a good thing. It is however clear that some might lose, such as the businesses which filed for bankruptcy and might have foregone that result had the interest rates been adjusted according to the new ruling.
Yesterday the Minister of Economic Affairs proposed a new legislation intended to make it easier for creditors to correct their loan rates. However, the bill only applies to loans taken by individuals.
This does not come as a surprise to Egilsson, since businesses do not have the same kind of consumer protection as individuals. Nonetheless, their matters must also be handled properly.
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