The Supreme Court of Iceland‘s ruling has thrown the Icelandic household debt pickle into an almighty pickle-feast. The Court ruled that the currency loans which many Icelandic housholds had borrowed at their chosen financial institution for car loans and mortgages were illegal. According to Icelandic law, it is illegal to tie loan contracts to indexes [...]

Because of time limitations (only 24 hours in the day) I am very grateful to Vilhjalm A. and Gandri for putting down in words exactly what I have been pondering about what Johanna Sigurdardottir calls the “definite solution to finally meet the required needs of Icelandic households”. From Vilhjalm A. (translations mine ): Finally the [...]

The minister of social affairs now wants to write off car loans which are overextended down to 110% of the market value of the car. A big relief for those who have seen their loans double, but a major folly. Yesterday I heard a Social Democrat explain how the Independence Party majority in Reykjavik’s city [...]

Worrying himself sick every night over the household’s finances, he decided that the correct and responsible thing to do would be to talk to his bank. The bank’s friendly customer representative brought out a spreadsheet and started entering information about his earnings and spending. “This is what you have to do”, she said. “You have [...]

Remember this man. He is one of the faces of Iceland who has been cast aside by his society. The District Court of Reykjavik yesterday declared that the borrower of a currency loan was responsible for paying his loan fully, even if it had doubled in one year. The Court really had few other options, [...]

It is hard to understand why members of parliament and the government are outraged when the state is supposed to pay unfair debts. When they are simultaneously adamant that the state’s citizens should pay up their unfair debts fully and completely.

If the typical Icelander owns 1 million ISK in a bank account and loses 200.000 then he will experience it as if he’s lost that money. If the typical Icelander owes 1 million ISK in his property and 200.000 is added to the capital because of price indexation and inflation then he will not experience [...]

At the end of the news article summarizing the details of the proposed transfer of Arion/Kaupthing, we find the following statement of Steingrimur J. Sigfusson, the Minister of Finance: “The Government is satisfied that Kaupthing Bank’s creditors have acquired the majority of the share capital in Arion Bank, and it is important for the development [...]

Mr. Jonsson from this post has told DV of how Kaupthing/Arion monitored their accounts once they were behind on payments on their mortgage. Well duh, spying on customers’ personal matters is commonplace and very easy? If a single girl who works at a branch at an Icelandic bank meets a handsome guy downtown during the weekend, one [...]

Iceland today is the one where Johannes Jonsson of Baugur is defending the decision of Kaupthing/Arion to explore every possible way to allow him and his family and business partners to retain Hagar, which controls around 60% of Iceland’s food market. This despite the record losses of their companies which have had to have tens [...]