From Iceland — Iceland Economy Still At Risk

Iceland Economy Still At Risk

Published February 12, 2013

According to an Icelander working for the World Bank, Iceland’s economy remains at risk of re-collapse due to the currency restrictions that remain in place following the 2008 crash, the Telegraph reports.
“Without radical action, another economic collapse is unavoidable in Iceland because of the capital controls, the country still hasn’t gone through the adjustment it needs,” Friðrik Jónsson said to the Telegraph.
It had been decided in 2011 that restrictions on foreign currency moving out of the country would be lifted this year. This, however, has other experts concerned that the diminished restrictions will see a mass exodus of foreign currency from Iceland, causing the króna to experience another sharp fall. To date, the currency restrictions have forcibly held millions of króna in the country, including large foreign holdings. The restrictions further prohibit the average resident from making even small monetary transfers out of Iceland.
Support The Reykjavík Grapevine!
Buy subscriptions, t-shirts and more from our shop right here!

Show Me More!