IMF: Iceland is already doing enough to help endebted householders

The chief representative of the IMF in Iceland yesterday said that current protection measures for indebted householders are sufficient and that people now need to concentrate on using them to their full advantage. Widespread debt reduction or write-offs would be too heavy a burden for the state and the pension funds to carry, he said.

“It is important to recognise that the government has done a lot,” IMF ambassador Franek Rozwadowski told

“It has made a plan which, in their opinion and ours, is sufficient to tackle the debt problems of the worst positioned householders,” he added.

Any widespread discount or write off of household debt would serve to increase the debt burden of the Icelandic state to unsustainable levels, he believes – and the harsh burden would fall on all tax payers.

He would not comment on the recent political protests which have rocked Reykjavik, or speculate on the government’s stability; that is not the place of the IMF, Rozwadowski said.

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