The Icelandic supreme court ruled this afternoon that Icelandic loans indexed to a foreign currency are illegal.
This is hugely significant for thousands of people in this country.
As many of you will know, the foreign currency loans were one of the most serious consequences of the economic collapse for normal people in Iceland. Thousands of Icelanders had taken out these so-called “currency basket” loans to buy homes and cars, and when the Icelandic currency plummeted, their loans doubled, tripled and even quadrupled in value, with disastrous effects.
And now, they’ve been deemed illegal. Exactly what the implications of this are I’m not entirely sure [the World Cup dominates everything these days, so we don’t even get Kastljós in the evenings, which might help shed some light on the matter] — but it’s sure to be big.