Home > Uncategorized > Iceland: “Many will be forced to sell homes and cars”

Iceland: “Many will be forced to sell homes and cars”

Icelanders are finding it increasingly difficult to keep up their home and auto payments as their currency is almost worthless in international trade. From Bloomberg:

On Oct. 8, the [Iceland’s] central bank, Sedlabanki, abandoned a peg to the euro after just one day when it was unable to defend the rate of 131 kronur per euro. Trading effectively halted when no overseas bank could be found to accept the currency.

Commerzbank AG, Germany’s second-biggest bank, said yesterday there is “no active market” in the krona. The last quoted price was 340 per euro, compared with 122 a month ago.

A loan of 10 million kronur taken half in Japanese yen and half in Swiss francs in January now stands at 17.8 million kronur, an increase of 78 percent, according to data on the central bank’s Web site. That has left people fretting about whether they will be able to keep their cars and homes as the economy deteriorates.

Categories: Uncategorized
  1. October 14, 2008 at 11:01 pm

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

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