…which sounds a lot more reasonable and realistic than the Spanish language report, which appears to be highly inaccurate. Even in a small nation like Iceland (320,000 citizens) the process of re-evaluating home values and restructuring mortgages to more closely match those values (along with the current financial situations of borrowers) is a slow and time consuming process. And of course it would be an utter disaster if banks were forced to simply erase a significant portion of their assets, regardless of how well-intentioned the reasons were. But it’s good that Iceland is making a serious attempt at helping honest borrowers keep their homes and pay back their mortgage loans.
It’s also reassuring to see that they’ve put the heads of both politicians and bankers on the chopping block, which is more than I can say for our own government.