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Icelandic Households Owe $11.3 Billion in Inflation-Linked Debt

Icelandic household owed the country’s domestic lenders 1.43 trillion kronur ($11.3 billion) in loans that are indexed to inflation, according to a statement posted on the island’s parliament’s website late yesterday.

Icelandic corporations owed the equivalent of 30.9 percent of the country’s economic output, or 470 billion kronur. Households saw their debts rise by a combined 6.7 billion kronur from Feb. 1, 2010, to Jan. 31, 2013, due to inflationary pressures from rising taxes. At the same time, corporate debt rose by 2.5 billion kronur for the same reason, according to the statement

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