Sigurður Hannesson, who has a PhD in mathematics and is CEO of the investment company Júpíter, says that the process of lifting the currency restrictions could take decades if a credible financial environment is not ensured for foreign owners of ISK.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />Icelandic Currency. Photo, Copyright by the Icelandic Photo Agency.
Recently, the Icelandic Parliament strengthened the laws on currency restrictions. The change in the law closed a loophole which could have led to hundreds of billions of ISK pouring out from the country.
All in all, it is believed that owners of thousands of billions of ISK are waiting to get their funds out of the country. Sigurður says that obviously the Central Bank would like foreign owners of ISK to use their assets by investing in projects in Iceland. Considering the current situation, that will take decades. The decision, made by the authorities, to tighten the currency restrictions shows the extent of the problem, ruv.is reports.