Iceland defies IMF, writes off 24,000-euro mortgage of each household

REYKJAVIK - The Icelandic government said Saturday it would write up to 24,000 euros off the mortgage of every household, making good on an election campaign promise despite international warnings over the plan.

The cost of the measure is estimated to reach 150 billion krona (900 million euros, $1.2 billion) over four years, the government said in a statement, without giving details on how it would be financed.

The Progressive Party -- led by Prime Minister Sigmundur David Gunnlaugsson, winner of late-April elections -- had won voters over with its campaign promise to offer household debt relief.

Gunnlaugsson has said since taking office that the scheme would not hurt public finances, and had initially suggested that foreign creditors of Icelandic banks would bear the write-off.

But there have since been no details on the financing plan for the scheme.

The debt relief promise has been met with skepticism elsewhere, with both the International Monetary Fund and the Organization for Economic Cooperation and Development warning against it.

The IMF had said that Iceland has "little fiscal space for additional household debt relief", while the OECD had called for the mortgage relief efforts to target only low-income households.

Standard & Poor's had also slashed the outlook for Iceland's long-term credit rating to negative from stable, saying the plan could damage foreign investors' confidence if it is to be funded by existing creditors of Iceland's banks.

The agency further warned that it could still lower Iceland's ratings over the plan.

Many Icelandic households are struggling to repay housing loans indexed to inflation that seemed safe prior to the 2008 financial crisis but has caused borrowing costs to skyrocket following the krona's collapse against other currencies.

"Currently, household debt is equivalent to 108 percent of GDP, which is high by international comparison," said the government in a statement.

"The action will boost household disposable income and encourage savings," it said, adding that the debt relief would begin mid-2014.

source: interaksyon.com

Dishwashing bars could pose health risks

It is ironic how an object used to clean and wash dirt in kitchen utensils can actually pose danger to our health.

A recent study of the Philippine Society of Microbiology (PSM) confirms that the use of bar solution in cleaning the dishes is a risky practice because it could bring negative effects to every household particularly on the aspect of health.

With the aid of a third party research agency, Proctor and Gamble commissioned a research and survey to reinforce this study and come up with such results. It was in late February 2012 when the survey was conducted. There were 150 respondents and 10 control households. Ms. Jan Ang, Joy Brand Manager, added that 6 out of 10 moms use dishwashing bar solution.

According to Dr. Jessica Simbahan, Immediate Former President of PSM, results show that dishwashing bar solution is highly contaminated with germs and is 10 times more unclean and unsanitary than a dirty sock. Also, it is considered as the dirtiest household item tested among other items like trash bin, toilet seat cover, and toilet bowl rim. During the survey, a luminometer or germ meter was used to gauge the level of contaminants in bar solutions and other household items.

However, Dr. Supachai Basit (incumbent National President for Philippine Society of Microbiology) stressed that besides bar solution, improper hygienic practice can also contribute to the increase of germs. “When a detergent solution is left exposed and is kept soaking, the level of contaminants increase,” Dr. Basit explained.

Below are some simple sanitation tips advised by Dr. Basit:

1. Clean and change your sponge regularly. Sponge is another culprit in the kitchen because microbes thrive their especially when it is moist or soaked in water.

2. Clean the cutting boards well. There should be a separate cutting board for raw food and cooked food.

3. Wash hands before and after meals and snacks.

4. Don’t share hand towels.

5. Use anti-bacterial dishwashing liquid. It is better to directly apply the dishwashing liquid on the sponge rather than dilute it in water.

Food poisoning, infection, diarrhea and typhoid are some of the risks that can be acquired and experienced without proper hygienic practice and mindfulness.

The research aims to support Joy Dishwashing Liquid’s ongoing awareness called “Nay, Gising!” an awareness campaign that aims “to serve as a wake-up call for Filipino moms and to educate them on proper kitchen hygiene.”

source: interaksyon.com