Special Interest Rate for Kópavogur Financial Director Skip to content

Special Interest Rate for Kópavogur Financial Director

During her time as the municipality’s financial director 15 years ago, former Mayor of Kópavogur Guðrún Pálsdóttir was given interest free loans to cover charges for municipal street construction and more beneficial interest rates on loans than others when buying a lot for constructing a private home.


Archive photo by Páll Stefánsson.

According to Fréttablaðið, this came to light when documents were found inside a safe at the town council’s offices and was one of the major reasons for the termination of the coalition of the Social Democrats, Left-Greens, Second-Best Party and Y-List earlier this year, ruv.is reports.

Guðrún told the newspaper that the lower interest rate of the loan was a case of human error and that it was common practice to cancel interest for street construction loans in the case of delays; operations around her house had been severely delayed, she stated.

Click here to read more about the affairs of Kópavogur authorities.


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