IMF Says Iceland's Debt Relief Risks Housing Fund: Nordic Credit
Iceland's
plan to help households buckling under inflation-linked mortgages is
bad news for the state's Housing Financing Fund, according to the
International Monetary Fund.
The government unveiled plans last
month to reduce household debt by 150 billion kronur ($1.28 billion), in
part by raising taxes on banks and offering tax breaks for homeowners.
The move, which was a pre-election promise, risks backfiring because of
the burden it will place on HFF's balance sheet, according to the IMF.
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