Iceland’s banks face more losses

Icelandic banks and their foreign creditors are facing fresh losses under government proposals that would sharply cut the debt burden of crisis-hit households.

Reykjavik announced legislation on the 16 September 2010 to recalculate thousands of car loans and home mortgages indexed to foreign currencies after an Icelandic Supreme Court ruling that some of the loans had been issued illegally.

Iceland: Ministry of Foreign Affairs: Press release, 16.9.10: Fair Resolution Ensured through Legislation http://eng.efnahagsraduneyti.is/Publications/nr/3142

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