A $2 billion debt relief proposal under consideration by the Icelandic government is being blocked by the Icelandic Pension Funds Association, which holds most of the country’s mortgage debt and has assets of about $16 billion, according to a Bloomberg report.

Led by the Interest Group of Homes, the proposal states that lenders should write off the 220 billion kronur ($1.99 billion) in mortgage loans to help the 39% of homeowners in debt.

“We don’t support the ideas of the Interest Group of the Homes on general write-offs on loans,” Hrafn Magnusson, managing director of the Icelandic Pension Funds Association told Bloomberg. “The measure would mean that members will see their pensions cut.”