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First steps to lift capital controls could be taken this year Featured

Bjarni Benediktsson, minister of finance Bjarni Benediktsson, minister of finance

Bjarni Benediktsson, the minister of finance, says that the first steps to lift the capital controls could be taken this year. "It can happen during this year, but it depends on whether it will be possible to coordinate the expectations of all parties involved". He however said that this would not happen in one swift action.

The minister said that the capital controls would be lifted in steps, and that they would disappear over a period of time. He added that stability had to be insured, that government deficit is low and that inflation is moderate. Actions are being taken to increase investment and create new jobs, belief in the future is important.

Bjarni was asked what has changed since he and Illugi Gunnarsson, the minister of education and culture, wrote an article in 2009 where they said that it was unlikely that stability could be achieved using the Icelandic króna. Bjarni said that the article was based on what had happened the years before, when Iceland had a large current account deficit year after year. Bjarni said that past years have been used to correct this. "This is a very painful action" said Bjarni. He also said that the experience of other European countries has affected his opinion. The minister said that the Icelanders would have to increase discipline themselves, and this discipline could not be imported using another currency.

 

Last modified onSunday, 09 February 2014 15:03
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