Iceland ends capital controls 8 years later
17 March, 2017
Iceland`s government lifted last Tuesday capital controls on the country's individuals, firms and pension funds, put in place to stabilise the economy during the country's 2008 financial meltdown.
“We’ve reached an incredibly enjoyable milestone in our economic development since the financial crisis of 2008 and 2009,” PM Bjarni Benediktsson (pictured) said. During Iceland's crisis, when the three biggest banks collapsed, the restrictions prevented foreign investors from taking their money out of Iceland and allowed the authorities to shore up the national currency, the krona. In recent years, the restrictions impeded Icelandic companies with business activities abroad, and have rendered the country less attractive to foreign investors.
The Central Bank of Iceland said it has concluded an agreement to buy offshore krona assets, equivalent to ISK 90bn at an exchange rate of 137.5 krona per euro. Iceland has been locked in a dispute with funds that owned more than $1bn worth of ISK-denominated assets, frozen by the Icelandic authorities through capital controls.