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Iceland says funds withdraw request for inquiry into frozen assets
April 27, 2017 / 4:19 PM / 7 months ago

Iceland says funds withdraw request for inquiry into frozen assets

REYKJAVIK, April 27 (Reuters) - The Icelandic government said on Thursday that four investment funds had withdrawn their request for independent experts to look at the country’s decision to freeze more than a billion dollars worth of bonds.

The withdrawal brings closer an end to Iceland’s efforts to clean up the damage done in the financial crisis of 2008, which led the authorities to impose capital controls to keep money from flooding out of the country. Those controls effectively froze the assets owned by overseas investors.

“With this development, there is no longer any outstanding legal action against the Republic of Iceland in connection with the authorities’ implementation of the capital account liberalisation strategy,” the ministry said in a statement.

The controls have now been lifted. The four funds indicated in a letter to Icelandic authorities they had also been compensated for the assets, so their request was moot.

Foreign funds, including Autonomy Capital, lodged the request amid a battle between them and the government over how to unfreeze their krona assets. It was granted by an Icelandic court late last year.

Since then, Iceland has struck deals with some of the funds whose offshore krona assets were frozen. The Icelandic finance ministry said the four funds had written to authorities to say they were dropping their request following an agreement with the central bank over the purchase of their krona holdings.

The funds and their lawyers did not immediately respond to requests for comment.

Reporting by Ragga Sigurdardottir,; additional reporting by Marc Jones; Writing by Niklas Pollard; Editing by Larry King

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