Removing Iceland’s capital controls is becoming harder as the high interest rates, deployed to backstop the krona, are swelling the amount of captive money held by offshore investors and posing a risk to the equity market, the head of TM Insurance Ltd. said.
The party ousted from government in 2009 after presiding over Iceland’s financial meltdown emerged as the biggest winner in the weekend’s parliamentary elections as talks start to form a ruling coalition.
Bank of Finland Deputy Governor Pentti Hakkarainen is urging Europe’s policy makers to come up with a more predictable crisis-management rulebook after Cyprus’s bank creditor bail-in confused investors.
French President Francois Hollande hosted Angela Merkel’s opposition challenger for talks in Paris, sending the German chancellor a public signal that she won’t get his support in federal elections in less than six months.
A two-year slump, 19 million unemployed and five countries on emergency aid are no reason to take bold, immediate action to spur economic growth, according to European officials set to defend their handling of the debt crisis in Washington this week.