The Central Bank of Iceland governor, Mar Guðmundsson, has denied the existence of a rift between him and the country's prime minister, Sigmundur Gunnlaugsson, over forthcoming proposals for household debt relief.

The Icelandic government is expected to announce plans to reduce the debt burden on the country's households later this week. Local media reports say that, in the build-up to the announcement, Gunnlaugsson has accused Guðmundsson of "playing politics" by raising questions over how the