effective today Iceland is going to
return to the international market the
government announced that it will lift
almost all of the remaining capital
controls lying its citizens and
corporations and pension funds full
access to global capital markets that
puts an end to an eight-year struggle to
clean up after the 2008 banking collapse
for more let's bring in Bloomberg news
reporter Omar Velda Marcin he's in
Reykjavik for us
Omar great to have you on the program so
where will Iceland go from here some
signs it seems that the economy of
Iceland is doing pretty nicely thank you
right now it sure is thank you and it
will be interesting to follow the last
few days both in terms of what will
happen you'll see whether we'll see a
lot of volatility in the asset of the
krona
or whether you guys can pick Treasury
bonds and the the in-text bonds are
going to are going to be very volatile
of where we're at and what traders are
going to do about it so it's definitely
probably an interesting time to follow
do you think that obviously the Treasury
and Iceland are fully prepared for that
kind of volatility that might common and
I suppose really what the market wants
knows is this absolute remove or
complete removal of all capital controls
money free in money free ID not
completely there are some roadblocks I
think government to try to prevent the
repetition of the carrot rate which
basically had a lot to do with the
collapse in 2008 and there are some
remnants that are still left in the
process for for us funds are still
locked in the capital controls but they
have about two weeks to negotiate with
the government if if they want to get
out and in this go it seems amazing
eight years after the crisis
Omar seems amazing now that the
government hopes that these moves the
removal of these capital controls will
ease pressure on the currency to
appreciate what has been driving that
currency so much so much stronger over
recent so months tourism arrivals have
been astronomical and Iceland we've gone
from about 500,000 tours to a projection
projection of 2.3 million this year
you know there's only three hundred
forty thousand people living here so I
just put a huge pressure on a lot of
services and lots of foods that are
being sold to the island and obviously
in return the currency as well