Attendees of an open public meeting, held by the Interest Group of Households (HH) in Idnó in Reykjavík last night, booed at Minister of Social Affairs Árni Páll Árnason when he tried to defend the government’s debt relief plan for homeowners.
The meeting was well-attended and speakers debated whether the plan was a good solution or whether it was likely to make the debt situation of homeowners worse in the long run, Morgunbladid reports.
Árnason, along with Minister of Justice Ragna Árnadóttir and Minister of Business Affairs Gylfi Magnússon, presented the government’s plan in late September, which includes a lower monthly debt load of indexed mortgages and car loans as of November 1.
The HH released a statement yesterday, saying that the government has not gone far enough in correcting the principal balance of mortgages.
The interest group’s demands in regard to other loans have not been met and the government, the Icelandic Financial Services Association and the National Association of Pension Funds refuse to negotiate, the statement reads.
Therefore the HH is calling for a payment strike from November 15 to December 10, 2009.
Click here to read more about the government’s debt relief plan.