The central bank of Iceland (Sedlabanki) has said that the country’s economic recovery has significantly reduced risks associated with investments in Iceland.
The news came late last week via the Sedlabanki Financial Stability report, which said the bank would continue to protect the North Atlantic economy ahead of the removal of capital controls that were put in place following the 2008 banking collapse.
However, the report said that the Icelandic kroner might see continued instability over the next three years as Iceland must pay off a large amount of foreign loans.
Mar Gudmundsson, governor of Sedlabanki, said in the paper that risks associated with the forthcoming removal of the controls would not be assessed until the bank begins to lift the restrictions. He added, “It’s unlikely that any such steps will be taken until at first in the coming year,” Bloomberg reports.