Inflation in August was measured at 16% in Iceland.
In the European Economic Area 0,6%.
In the Eurozone -0,2%.
Those mortgages that aren’t in foreign currency in Iceland are price-indexed with the consumer price index.
In less than three years I have paid back 22% of the original loan amount on my mortgage. Yet the capital of the mortgage has grown around 20%.
So even though I’ve paid a quarter of the amount I borrowed back in what can safely be described as a reasonable time, I still ove a quarter more than I originally borrowed.
Remind me again why we have the ISK?
And do tell me the reasons why Steingrimur J. Sigfusson and Johanna Sigurdardottir don’t think households are due for corrections on their mortgage?
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Paul H
2 years ago
Ouch.
Under the circumstances it would make most sense to re-structure loans to a form that can actually be paid back.
For benefit of both lender and borrower.
Weren’t the ‘amendments’ to the Icesave ‘deal’ meant to make it possible for Iceland as a whole to be capable of paying off the ‘debt’?
Then surely Icelanders as individuals deserve the same consideration.
Otherwise, what was the point?
Penalizing people who are doing the right thing by paying off debt is counter to common sense.
Dadi
2 years ago
very true Paul, the Icelandic government is asking of its citizens what it thinks is unfair for itself
The State Vs. The People
2 years ago
[...] H. makes a good point in a comment here: Under the circumstances it would make most sense to re-structure loans to a form that can actually [...]