Iceland MPC fears debt relief package will boost inflation

iceland volcano

The Icelandic government's plan to bail out over-indebted households to the tune of $1.3 billion would "strongly affect" Iceland's economic outlook" in the near term and "cut into the current account surplus", according to the minutes of the Central Bank of Iceland's latest monetary policy committee meeting.

The proposed debt relief package, announced last November, is aimed at assisting "over 100,000 households" with debt amassed during the boom preceding the country's financial collapse in

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