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Friday, August 19, 2011

Still illeagal loans in Iceland ,Central bank to answer questions.

Unemploymnet is now at around 6.5 % in Iceland.
Many have moved to other contries to get jobs,and mostly to Norway.
Taxes have been increased in all categories.

And now it looks like that the regular loans in Iceland ,have been partly illeagal.
Loans in Iceland are price indexed.
That means that if you take a loan for 25 years,and it is ten million kronas,then the payment is indexed.
So if you have to pay per month a few thousand kronas, there is ,interests rates ,and also price index that follows the inflation .
So if you interests rates where originally 4,3 percent,and infaltion 5,percent then the total interest can go up.
And  the interests rates go on the original capital and the payments.
But now, the Home owners orginasation have investigated ,and found out ,that the price index on the Capital of the loan, is not leagal.
They have gone trough all the laws ,and not found anything that says that the price index on the Capital is leagal.
But price index on the payment is leagal.
Not the CEO of the central bank has been asked by the Parliement Ombudsman ,and now people are waiting for his answer.
It looks like that the goverment is only out to help the companys and banks , but not the public,
I thought that the goverment was By the People and for the People. 





37 comments:

  1. Dori,
    Thanks for the economic update in Iceland. I'm sorry to hear that so many Icelanders have moved to Norway to get jobs. It doesn't sound like Iceland's economy has improved very much. Our economy in the U.S. is not doing well either. We have a lot of people unemployed, some cities and counties going bankrupt, prices going up, and the government isn't doing anything to help.
    Bob in Manassas, Virginia USA

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