Icelandic Retirement Savings Threatened as Bubble Risk Grows
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Iceland’s 2.7 trillion kronur ($22.7 billion) of pensions are under threat by capital controls that risk generating bubbles in both equity and bond markets, the second-largest manager of retirement money said.
“We’re seriously concerned” that controls on the krona, imposed in 2008 to prevent a flight of capital, are risking Iceland’s entire pensions system, Asta Rut Jonasdottir, chairman of the Pension Fund of Commerce, said in an interview in Reykjavik on Sept. 11. “We’re worried about bubble formation and the work related to the removal needs to be done swiftly. We’ve waited much, much too long.”