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REYKJAVIK, October 1, 2010 (AFP) - Hundreds of demonstrators gathered outside the Iceland's parliament in Reykjavik on Friday, voicing their anger at home foreclosures in a country still aching from the global economic crisis.

Protestors threw glass bottles and eggs -- one of which ended up in the prime minister's hair -- and held up signs that read "A human future!", "We want a government that works for its people", and "Elections now!"

About 50 police were present and the crowd reached 1,000 demonstrators at its peak, police said.

A six-month freeze on mortage repayments put in place by the government expired on Thursday, triggering the anger of many Icelanders who will fall short on home payments.

The daily Morgunbladid said that about 400 homes will fall into foreclosure this year, for a total of about 1,000 foreclosed homes since the end of 2008, when Iceland's bank system collapsed and dragged down the island's economy with them.

According to Thordur Bjorn Sigurdsson of political party The Movement, nearly 40,000 households are unable to make their mortgage payments.

"People are protesting the government's attitude towards housing issues in Iceland, and the lack of action on by the government to deal with the problem at hand," he told AFP.

At the demonstration, 40-year-old Brynjolfur, an unemployed carpenter, said he was protesting the "useless parliament."

"I would like to see every single MP carried out of here today. We should work as a nation and get to vote on everything," he said.

About 200 people, according to media estimates, had camped out in front of parliament overnight to protest foreclosures.

"People are losing their homes because the government won't help them. They are forcing us to build cities of tents. Is that what they want Iceland to look like?," a woman in her fifties told AFP.

Iceland's economy all but collapsed after its major banks went under at the end of 2008. It is now receiving aid from the International Monetary Fund.

The parliament on Tuesday voted to send former prime minister Geir Haarde to a special court over his role in the crisis.

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