Iceland Reveals $1.25 Billion in Mortgage Reductions
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Iceland has announced plans to write down mortgages linked to inflation by 150 billion kronur ($1.25 billion) to speed the nation’s recovery after economic collapse in 2008.
The government plans to provide homeowners with as much as 80 billion kronur in direct writedowns of home-loan debt and give 70 billion kronur of tax exemptions over three years, according to a statement handed out in Reykjavik. The deal is equivalent to 9 percent of Iceland’s $14 billion economy.