New Bills to Assist Debtors Underway Skip to content

New Bills to Assist Debtors Underway

A bill intended to ease the load for indebted homeowners was approved in the cabinet today and another is expected this week. A third bill was introduced in the cabinet on Friday and a fourth was made legislation in Althingi, the Icelandic parliament, last week.


The Government Offices. Photo by Páll Stefánsson.

The new legislation postpones payments for those who apply for payment adjustment at the ombudsman of debtors. Now debtors no longer have to wait for their application to be approved before they obtain a postponement on their payments, reports.

The government agreed on Friday to submit a bill to parliament which authorizes the state-run Housing Financing Fund to rent apartments at market value which the fund obtains through auctions, including a clause saying the tenant has a priority to purchase the apartment. The purpose is to give those who have lost their apartments at forced auctions a chance to repurchase them.

As for the two other bills, the one that was approved to day assumes amendments to the law on bankruptcy proceedings to the effect that claims lapse in two years, as stated on It is hoped that the bill can be submitted to the cabinet on Friday this week.

The other is a bill in response to reactions to the verdict on loans indexed in foreign currency from last summer. It will probably be submitted to parliament this week.

In addition to these four bills, work is being conducted within the administration aimed at solving the long-term problems households are facing. No formal meeting was held on that subject yesterday.

Click here to read more about the problems facing households and the reactions to them and here and here to read stories about the verdict on foreign currency indexed loans.

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