British Councils may receive losses from failed Icelandic banks

| April 20, 2009 | 0 Comments

A creditors’ report from the administrators of Heritable Bank, the UK arm of failed bank Landsbanki, has revealed that British councils may be able to recoup some of their losses.

The Icelandic banking crisis emerged last autumn after Landsbanki, Glitnir and Kaupthing all collapsed and had to be rescued by the country’s Government.

Hundreds of millions of pounds were invested in Icelandic banks by local councils and it is now understand that they could get up to 80% of funds back - totalling around £300 million.

More than 100 UK local authorities had over £900 million invested in Icelandic banks and it is understand that around £1 billion of UK public money was deposited in the country’s banks.

Paul Carter, the leader of Kent County Council, told the BBC that he is very encouraged by the news, and added that the initial payment may be made at the end of July.

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