STOCKHOLM May 9 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
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 ($942,951) 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
As part of the process, the central bank is currently buying
back offshore crown assets from foreign funds.
($1 = 106.0500 Icelandic Crowns)
(Reporting by Ragnhildur Sigurdardottir; writing by Johan
Sennero; editing by Alexander Smith)