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Iceland plans to lift limit for offshore crown transfers
May 9, 2017 / 3:33 PM / 7 months ago

Iceland plans to lift limit for offshore crown transfers

STOCKHOLM (Reuters) - Iceland has proposed a further easing of capital controls imposed during the global financial crisis by raising the amount of money individuals can transfer from locked offshore Icelandic crown accounts to nearly $1 million (£773,080).

An illustration picture shows Iceland banknotes of one thousand Krona in Reykjavik, Iceland, in this March 23, 2012 file photo. REUTERS/Ingolfur Juliusson/Files

Around $2 billion in foreign money, most belonging to U.S.-based funds, is held in such accounts and under government proposals put forward last week depositors will be able to withdraw interest payments, indexations and dividends totalling 100 million Icelandic crowns (£727,871) per year.

Iceland’s coalition government is likely to get the proposal, which lifts the limit from the previous level of 1 million crowns, through with its slim majority.

The government said in mid-March that the remaining capital controls, imposed in 2008 to stop money from flooding out of the country, would be lifted, easing restrictions on businesses and households.

As part of the process, the central bank is currently buying back offshore crown assets from foreign funds.

Reporting by Ragnhildur Sigurdardottir; writing by Johan Sennero; editing by Alexander Smith

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