This Time It's Different, Prime Minister Says as Iceland Booms
- Benediktsson says must proceed cautiously on capital controls
- Economy still hostage to massive offshore krona overhang
Reykjavik, Iceland.
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Iceland may be booming again, but there are still nearly $2 billion worth of offshore krona assets threatening to lay to waste more than seven years of painstaking clean up work, its new prime minister said.
The country is preparing the final steps to do away with the last of the capital controls imposed in 2008, but still has to contend with an overhang of offshore kronur, a big chunk of which is held by Eaton Vance Corp. and Autonomy Capital LP and is now the subject of a legal battle.