Iceland’s Central Bank Warns Government Skip to content

Iceland’s Central Bank Warns Government

By Iceland Review

The directors of the Central Bank of Iceland have issued a warning to the government in regards to its plans of increasing personal exemption and lowering income tax in light of the current instable economic situation.

The Central Bank believes the government’s plans may cost the state treasury ISK 47 billion (USD 610 million, EUR 393 million) in the next two years, ruv.is reports.

The warning issued to the Ministry of Finance, which is responsible for executing these plans, says that timing is important when financial operations are concerned.

Considering the current economic situation in Iceland, the Central Bank recommends public finances be restrained for one year, or until the tension in the national economy has loosened and inflation has receded.

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