“Iceland imposed restrictions on the movement of capital into and out of the country in 2008 after its three largest banks—Landsbanki, Kaupthing and Glitnir—collapsed. Their combined assets were about nine times the tiny island nation’s gross domestic product, currently roughly $15 billion.  The government is concerned that if the deal with creditors is struck in the wrong way then creditors taking their recovered kronur out of Iceland could destabilize the economy, not least by undermining the value of the currency. That could trigger negative effects such as a fresh round of spiraling inflation like the economy saw during the financial crisis.”

http://online.wsj.com/articles/iceland-brings-in-experts-to-help-lift-capital-controls-1404979518

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