Group on the Removal of Iceland's Capital Controls

The Ad Hoc Group on the Removal of Iceland's Capital Controls consisting of representatives of the Icelandic Government and the European Commission with participation from the European Central Bank and International Monetary Fund held its first meetings in Reykjavik on 20 and 21 September. The Group is led by Björn Rúnar Guðmundsson, Director of Economic Affairs at the Ministry of Finance and Economic Affairs.

The Group was established earlier this year in light of the challenges with regards to Iceland's application to membership of the European Union and its obligations under its membership to the European Economic Area. The Group is tasked with assessing the state of play and prospects for lifting of the controls in the context of the Government's liberalisation strategy and assist in forming a common understanding of the challenges in the process.

In addition to meetings with experts from the Central Bank of Iceland, the Financial Supervisory Authority and the Ministry of Finance and Economics, the Group met representatives from the Icelandic Financial Services Association, the Chamber of Commerce, the Confederation of Employees, academics and creditors to the estates of the old banks and the politically appointed Advisory Committee on the Removal of Capital Controls. The Group is to deliver an interim report before year-end. At such time, the need for further work by the group will be assessed.