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.

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

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

    Chris Moran

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: