Possibility of taking over properties and paying out the equity

Prime Minister Katrín Jakobsdóttir says the government will take possibly take over the premises of Grindvíkingar.

“On the one hand, we will take over the relations with banks and pension funds, which are known as lenders, and on the other hand, we will come in and pay out the equity to the residents of Grindavík.”

She says that it seems to be clear that the residents are not moving back to Grindavík any time soon.

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Buying up properties or relieving debt obligations

Jakobsdóttir notes, however, that in this situation, there are different ways. You can buy up the town’s houses, as if there was a considerable demand, and then you can also imagine the state paying the residents their equity in their residences, but the state would keep the houses for some time. “And then you have the chance to return and get back your residence and repay back the equity sum,” she says.

“Of course, both ways cost a substantial amount of money,” she said, “and the government and Natural Disaster Insurance and banks and lenders have to come together. This is worth tens of billions of dollars, as has just been reported,” she added.

Diminish uncertainty and give themselves a longer time

Jakobsdóttir says that the big issue for the government is to eliminate the uncertainty for the residents of Grindavík so that the they can start a new life. At the same time, it is important to see the big picture in the long term and look at the future of the community itself.

“For there is something that no one can say at this point, and at the same time no one can say that the community is safe, it’s hard to say that it will be unsafe for the rest of the future,” Jakobsdóttir says.

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"Very difficult meeting"

When asked, she says it's not time to declare Grindavík uninhabitable. A meeting with scientists has been held this weekend, and the whole fissure system is being mapped under the town. All of this data are important.

“It doesn’t change the fact that we are dealing with the uncertainty that the residents of Grindavík are facing, which they have actually been facing since October 25th. We deem it to be so great that the state intends to step in, but we are prepared to look at the future possibilities for this settlement and give us some more time for that.”

Strong solidarity

Jakobsdóttir welcomes the fact that the government has had a good meeting with the opposition on these issues, as many issues, such as what assessments to make, fire- compensation or real estate assessments, how to pay for it, continue to keep houses warm and ensure minimal maintenance. “These are the issues that are ahead, but they are all prepared to enter the work that I welcome,” she says, adding that it is important that this is not a political party decision but has an extensive support. The government also had a very good meeting with the Grindavík’s town council.

Jakobsdóttir believes that the government’s actions are important. “Of course, they might want a bill accepted in parliament today, and I completely understand that, but I think people have a strong understanding that this is more than just a decision. But this promise is given in a full-fledged consensus within the government, and I believe it’s actually has a much broader consensus.”