The government receives roughly 600 billion króna bill if the emergency legislation is reversed. That could cause serious problems for the government.

The work report of the work group of the IMF about the matters of Iceland was published today. The main concern is the great debts of the national economy. Despite the fact do the employees of the fund that the debts are still manageable as the process of paying it up will be quite quick.

The IMF is worried  about the results if the emergency legislation since last fall do not stick. If they are reversed it means an extra bill for 40% of the GDP, which would be nearly impossible for the nation to carry.

In the report says that there has to be a reconstruction or write offs of two of every three loans of the companies of the country. A fifth of the largest companies are in moratorium or in bankruptcy procedure. Then it says that 20% of the Icelandic homes are technically bankrupt and a similar ratio are barely handling their debts.

In the report says that the overdue loans in the banks have increased by 15-17% and the evaluation of assets brings up a dark image of the quality of the mortgages the banks have.

Despite the great economic difficulties says in the report that the situation is in general better than expected a year ago.

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