No debt write offs for Icelandic households

The Icelandic government has promised the IMF that it will not write off the debts of householders struggling to keep up with their mortgage repayments. Protesters have been stepping up pressure on the government to do more to help householders out of trouble – which was a key election promise.

The promise was made in the most recent notice of intent to IMF head, Dominique Strauss-Kahn from Iceland’s Prime Minister, Minister of Finance Minister of Commerce and the Governor of the Central Bank of Iceland.

Instead, the government proposes streamlining its existing provisions to help householders and to make them easier to understand and more accessible to all who need them. The notice of intent explains that writing off household debt would simply be too expensive for the state to bear.

The IMF apparently welcomes the fact that the ban on the auctioning off of repossessed houses ends at the end of this month.

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