Iceland c.bank: forex transaction delays easening

STOCKHOLM, Oct 13 (Reuters) - Iceland's central bank said on Monday delays in foreign exchange transactions at the commercial banks taken over by the state had begun to ease.

Iceland's financial watchdog has taken control of Kaupthing KAUP.IC, Landsbanki LAIS.IC and Glitnir GLB.IC to safeguard the domestic banking system in the face of an economic crisis hitting the country.

The central bank, Sedlabanki, said in a statement that Landsbanki had carried out some of its foreign exchange business on Monday, having begun operations under the new ownership.

"When the formal changes at the other banks are complete, they will begin to carry out foreign exchange business as well," Sedlabanki said. It said instructions it issued on Friday about limitations on foreign exchange transactions remain in effect.

"The appropriate parties, both in the central bank and in other financial institutions, continue their efforts to reinstate normal foreign exchange business."