Creditors Face $5 Billion Tax As Iceland Unveils Stability Tax

Following Iceland recently unveiling legislation to unwind capital controls, creditors including hedge funds could be facing a one-time stability tax of 39%.

Several funds flocked to Iceland after its 2008 collapse, snapping up distressed banking assets following the $85 billion default of the island’s three largest lenders.

Iceland’s legislation to unwind capital controls

As reported by ValueWalk, Iceland’s prime minister Sigmundur Davio Gunnlaugsson and finance minister Bjarni Benediktsson announced a plan to ease capital controls on Monday, which marks a huge step in the financial rehabilitation of the country. The announcement came almost 7 years after the capital...