Euro Crisis to Prolong Iceland Krona Controls, Morgunbladid Says

Uncertainty about the future of the European single currency will delay Iceland’s plans to remove capital controls before the end of 2015, Morgunbladid reported, citing Economy Minister Steingrimur J. Sigfusson.

“The capital controls reduce the chances of a run on our currency and a capital flight” out of Iceland, the Reykjavik- based newspaper cited Sigfusson as saying. “It’s clear that we have to evaluate the capital controls removal plan in light of the situation in Europe,” he said, according to Morgunbladid.

Iceland imposed capital controls in 2008 following the collapse of its three largest lenders in October of that year. The controls are stopping as much as $8 billion in kronur assets from leaving the economy, according to an estimate by Arion Bank hf.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik

To contact the editor responsible for this story: Jonas Bergman at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.