PM Promises Action Plan on Debt in Keynote Speech Skip to content

PM Promises Action Plan on Debt in Keynote Speech

Prime Minister of Iceland Sigmundur Davíð Gunnlaugsson gave his first keynote speech at Alþingi, the Icelandic parliament, yesterday. He revealed his intention to submit a parliamentary resolution on a ten-step action plan on debt relief for homeowners.

sigmundurdavidgunnlaugsson2013_psSigmundur Davíð Gunnlaugsson. Photo: Páll Stefánsson/Iceland Review.

“The action plan includes preparation for general correction of debt, lowering the capital of indexed mortgages, the option of establishing a special debt correction fund if financing is slow and the introduction of a so-called key law,” the PM stated.

With the key law, homeowners will be able to simply hand in the keys of their overcollateralized properties, Fréttablaðið reports.

“A group of specialists will start working on the abolishment of indexation of consumer loans and a project management on the reorganization of the mortgage market,” Sigmundur continued, as reported in Morgunblaðið.

Proposals and bills relating to the government’s action plan are to be handed in next autumn.

Minister of Finance Bjarni Benediktsson stated in his speech that the state of the national economy is not as good as had been maintained before the election and that an ISK 30 billion (USD 249 million, EUR 189 million) deficit is to be expected.

Árni Páll Árnason, who chairs the largest opposition party, the Social Democratic Alliance, criticized the government for planning extensive actions while stating that the outlook for the state treasury is poor. “What’s the sense of that policy?” he asked.

Sigmundur pointed out that fishing could likely be increased next season and thereby increase the export revenue for the national economy.

RÚV reported that chair of the Left Greens Movement Katrín Jakobsdóttir highlighted the importance of environment protection in her speech and chair of Bright Future Guðmundur Steingrímsson stated his party will lobby for a national referendum on continued accession talks with the European Union to be held in the next 12 months.

The current parliamentary session opened last Thursday.


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24.05.2013 | Ministers Exchange Keys, New Government Takes Power


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