Iceland’s extensive debt relief programme

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In late 2014, the government launched a new programme aimed at reducing households’ debt level by 20%. The programme has two pillars: a direct cut of mortgage principals by some 10% (financed by the government, inter alia through a new tax on financial institutions) and the use of debtors’ own voluntary pension saving accounts for another 10% cut.

Author: Stefán Ólafsson

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