EFTA Surveillance Authority backs Iceland in offshore crown case vs U.S. funds

Nov 23 The EFTA Surveillance
Authority on Wednesday backed the Icelandic government in two
cases where U.S. funds had argued the country had discriminated
against them when freezing assets.

The European Free Trade Association’s (EFTA) surveillance
body’s decision is a setback for the funds Autonomy Capital and
Eaton Vance that had hoped to get a better deal from Iceland
than had been offered in an auction earlier this year to
unfreeze offshore crown assets as the country moved to lift
eight-year-old capital controls.

“The EFTA Surveillance Authority (ESA) today closes two
complaint cases and finds that Icelandic laws on treatment of
offshore krona assets are in compliance with the EEA Agreement,”
the EFTA Surveillance Authority said in a statement.

The European Economic Area (EEA) Agreement comprises the EU
countries and the three EFTA States – Iceland, Liechtenstein and
Norway.

The decision comes after a preliminary ruling suggested
closing the case.

(Reporting by Daniel Dickson)

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