Iceland central bank committee to finalise law review by March

Iceland central bank committee to finalise law review by March

Iceland central bank committee to finalise law review by MarchA panel looking into the legal framework for Sedlabanki is to deliver its proposals at the start of March, its chairman has announced.

Iceland’s government is considering ringing the changes within the management of its central bank, including adding to the executive board and raising the number of governors from one to three.

Chairman of the committee Thrainn Eggertsson pointed out that the central bank was one of the few in the world at which the final decision came down to just one person. He revealed that they were looking into the advantages and disadvantages of increasing the number of governors as well as keeping things as they were at present.

Finance Minister Bjarni Benediktsson announced last year that the position would become available after Mar Gudmundsson, who was in the role at the time, questioned the government’s commitment to pushing the proposed household debt relief programme through.

However, after both the International Monetary Fund and Sedlabanki’s monetary policy board issued warnings, Gudmundsson was reappointed for another five years on 20 August.

Eggertsson’s committee plans to hold talks with political parties and employer and union organisations. He insisted, however, that any changes made would not affect the bank’s independence, adding that being “professional and independent” was the most important thing for Sedlabanki’s future.