Iceland’s decision to lift a number of capital
controls, which came into effect on October 21, has been met
with mixed reactions - not least from holders of offshore
krona, who are mounting a legal challenge against the
They claim that Iceland is discriminating against them by
putting their holdings - worth in the region of ISK 180 billion
($1.6 billion) - in locked accounts, and forcing them to accept
unfavourable terms to free the funds.
The government has defended its position to remove
restrictions for individuals and smaller businesses first,
saying it would not be wise to lift all controls at the same
time. This move could derail the country’s
newfound economic and financial stability.
"Capital controls were primarily the response to an economic
question – how do we stop the Icelandic economy from
collapsing?," said Guðmundur Ingvi Sigurðsson, partner
at Lex. "The Central Bank and...