The government of Iceland has forgiven the mortgage debt for those whose property values exceeded 110% of the property's valuation. No mortgages are being dropped. They are being (and some have been) REVALUED. Over inflated loans were reduced to 110% of the worth of the property. Foreign currency loans are now deemed illegal. By *revaluating* mortgages to closer reflect the current real value of the property. This nation chose a very different way of stopping the crisis from the rest of European countries. It decided to put politicians and bankers on the bench as the accused three years after their financial excesses would sink one of the most prosperous economies in 2008. Many are still under going hardship in Iceland, although this is welcome news.
Geir Haarde (ex prime minister) was just found innocent.