Iceland passes capital control legislation

On its final day before adjourning for summer recess, the Icelandic Parliament (‘Alþingi’) has passed legislation paving the way for the lifting of capital controls in Iceland.

In a move described as “historic” by Speaker of the House, Einar K. Guðfinnsson, Alþingi passed the Stability Tax Act, under which a one-off 39% tax will be levied on the total assets of failed bank estates do not complete composition agreements by the end of 2015.

Today’s legislation was announced by the Prime Minister, Sigmundur Davíð Gunnlaugsson, and Finance Minister, Bjarni Benediktsson, early last month and was passed almost unanimously by Alþingi today.

The aim of the legislation is to “help towards the lifting of capital controls, with economic stability and public interest at the forefront”.

“In this respect, 3 July 2015 is clearly a historic day,” says Guðfinnsson. “This legislation is one of the most important milestones on Iceland’s road from the great economic crisis towards the future.”

The full text of the two bills passed today (in Icelandic) can be found here and here.