Íslandsbanki Presents New Solution for Debtors Skip to content

Íslandsbanki Presents New Solution for Debtors

The customers of Íslandsbanki, formerly Glitnir, will soon be able to change their foreign currency mortgages to non-indexed mortgages in ISK, which will lower the capital by 25 percent. Debtors who have indexed mortgages in ISK can have the indexation removed and the capital lowered by ten percent.

The headquarters of Glitnir, now Íslandsbanki, in Reykjavík. Copyright: Icelandic Photo Agency.

Director of Íslandsbanki Birna Einarsdóttir confirmed this to Morgunbladid, adding that the bank’s customers will also be able to take advantage of the debt relief methods worked on by the government.

The Commissioner of the Inland Revenue has announced to Íslandsbanki that the lowering of the capital is not taxable.

“We hope that we can undertake these measures soon. We will also participate fully in the actions initiated by the government, which will probably be presented in more detail shortly,” Einarsdóttir said.

The government is planning to lighten the debt burden of mortgages by changing it to what it was in May 2008, as reported yesterday.

The goal is for these solutions to become available as of November 1, when the banks’ restoration will be completed.

Stöd 2 asked whether the two other largest banks, Landsbanki and Kaupthing, were planning similar actions as Íslandsbanki, but the banks’ executives were unwilling to comment on their plans for the time being.

Click here to read more about the government’s solution.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article