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Iceland Defers Plan To Relax FX Controls

Iceland has postponed until March 25 its publication of a blueprint for easing capital controls imposed in 2008.

Iceland has postponed until March 25 its publication of a blueprint for easing capital controls imposed in 2008, Reuters reports. The controls were introduced due to the around $5 billion in debts that were incurred on Icesave high interest savings accounts when Icelandic bank Landsbanki went bankrupt.

The nation has kept most of its capital account flows closed, but since 2009 has allowed investors to move proceeds from investments overseas and eased restrictions on trade flows. The government has placed three conditions for the lifting of controls, macroeconomic stability, a sound financial system and sufficient level of foreign reserves.

Click here for the story from Reuters.

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