Sigrún Davíðsdóttir's Icelog

ESA finds Iceland in compliance re offshore króna measures

with 5 comments

The EFTA Surveillance Authority, ESA, has now closed two complaints re treatment of offshore króna assets by Icelandic authority: ESA finds the Icelandic laws in compliance with the EEA Agreement (see ESA press release here, the full decision here). The disputed laws were part of measures taken in order to remove capital controls in Iceland.

I have earlier written extensively about the offshore króna issue, also the rather bizarre action taken by the so-called Iceland Watch against the Central Bank of Iceland, which rubbed Icelanders, even those sympathetic to the point of view taken by the offshore króna holders, completely the wrong way. The sound points, which can be made by the offshore króna holders, were missed or ignored and instead the Iceland Watch action was shrill and shallow, based on spurious facts.

In general EEA states are permitted, under the EEA Agreement, to take protective measures when a states is experiencing difficulties as regards its balance of payments. As spelled out in the press release the states, in such situations, “are allowed to implement a national economic and monetary policy aimed at overcoming economic difficulties, as long as the criteria for these protective measures are met.”

As Frank J. Büchel, the ESA College member responsible for financial markets sums it up: “Iceland’s treatment of offshore króna assets is a protective measure within the meaning of the EEA Agreement. The overall objective of the Icelandic law is to create a foundation for unrestricted cross-border trade with Icelandic krónur, which will eventually allow Iceland to again participate fully in the free movement of capital.”

The funds in question, Eaton Vance and Autonomy, are testing their case in an Icelandic court.

Follow me on Twitter for running updates.

Written by Sigrún Davídsdóttir

November 23rd, 2016 at 11:47 am

Posted in Uncategorised

5 Responses to 'ESA finds Iceland in compliance re offshore króna measures'

Subscribe to comments with RSS or TrackBack to 'ESA finds Iceland in compliance re offshore króna measures'.

  1. […] to a recent decision by the EFTA Surveillance Authority the offhore króna measures were within the remit of the […]

  2. My husband and i have been absolutely fortunate Jordan could carry out his researching via the precious recommendations he got out of the web page. It is now and again perplexing just to be making a gift of strategies that the others may have been trying to sell. And we realize we need the website owner to give thanks to for that. All of the explanations you’ve made, the straightforward blog navigation, the friendships you will help to create – it’s got most astounding, and it is helping our son in addition to the family reckon that this subject matter is brilliant, which is certainly extraordinarily serious. Thanks for everything!

    curry 8

    25 Jul 23 at 8:07 am

  3. My wife and i have been now fulfilled Chris could finish up his research via the precious recommendations he got while using the blog. It’s not at all simplistic just to continually be releasing solutions that many many others might have been trying to sell. And we all consider we now have the blog owner to appreciate because of that. Those illustrations you made, the easy blog navigation, the friendships you will assist to create – it is many fantastic, and it’s helping our son and us believe that the article is amusing, which is certainly really mandatory. Thanks for all the pieces!

    off white nike

    18 Jan 24 at 8:15 pm

  4. My wife and i have been very thrilled when Jordan managed to round up his research from the ideas he got through your site. It is now and again perplexing to simply choose to be giving for free hints that a number of people could have been trying to sell. Therefore we fully grasp we have you to appreciate for this. Most of the explanations you have made, the straightforward website menu, the friendships you will assist to foster – it is all astonishing, and it’s letting our son and our family recognize that the subject matter is excellent, and that is incredibly pressing. Many thanks for the whole thing!

    supreme clothing

    19 Jan 24 at 9:31 pm

  5. I am writing to make you understand of the great experience my child gained viewing your webblog. She discovered lots of issues, which included how it is like to have a great helping mood to make many people quite simply gain knowledge of specified specialized topics. You undoubtedly surpassed our own expected results. Many thanks for showing these invaluable, dependable, educational and even easy tips about this topic to Mary.

    kd shoes

    24 Jan 24 at 7:05 am

Leave a Reply