Iceland offers hard lessons for Cyprus on capital controls


STOCKHOLM/REYKJAVIK (Reuters) - For Iceland, there was a sense of deja vu when Cyprus's finance minister said capital controls would probably last "a matter of weeks". Five years after a banking meltdown, the north Atlantic island has just extended its own controls indefinitely.

When Iceland first announced those surprise plans after market hours in November 2008, the Confederation of Icelandic Employers director general rushed to parliament at night to try to persuade bleary-eyed lawmakers to reverse course.

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