Iceland lifts restrictions on the movement of capital that were introduced in the crisis year of 2008. Nine years ago, the authorities took this step to preserve the country’s economy.
Iceland cancels the control over the movement of capital, which has been operating since the financial crisis – such a statement was made by the government of the country, CNBC reports. This measure was introduced in 2008, after the collapse of the country’s three largest banks – Glitnir, Landsbanki and Kaupthing.
Then the financial organizations lost control over the capital, and their assets exceeded the size of the national economy several times. The decision comes into force from Thursday, and the companies will be able to return to the international financial markets. Thus, the abolition of control will affect private companies, pension funds and individuals.
Experts note that the decision became possible with the advent of the new government. “The abolition of the norm will allow stabilizing the currency and economy of the country during the financial crisis, which indicates the return of Iceland to the world financial markets”, the statement of the Finance Ministry of Iceland says.
This step was the first real action on the part of the new government and laid the foundation for strategic decisions.
“We can now look forward with a healthier, stronger and diversified economy”, said Icelandic Finance and Economy Minister Benedikt Johannesson.
At the same time, the national currency of Iceland has not demonstrated growth yet, but on the contrary, against the background of declarations fell by about 3% against the euro and the dollar on Monday.
Analysts note that in such way traders expressed their fears that this move could provoke an outflow of investment.
At the same time, the government began to gradually abolish capital controls last year, removing restrictions for local residents.
For this year, Iceland is betting that the restrictions will allow developing tourism, and the country expects to adopt about 2.4 million tourists this year.