Thomas Bridge 05 February 2014

Councils recoup £1bn lost to Icelandic bank collapse

Around £1bn of cash tied up in failed Icelandic banks has now been recovered by local authorities.

Just under £1.05bn had been deposited by councils in four Icelandic banks at the time of their collapse in 2008.

Following the sale of most councils’ remaining claims against the former banks through a competitive auction, it is now thought these authorities will have recovered more than 90p for every £1 invested in Landsbanki (LBI), Glitnir, Heritable and Kaupthing Singer & Friedlander.

Some £414m of council funds had been deposited with LBI at the time of the 2008 crash, with only £225m having been recovered prior to the latest auction.

According to the Local Government Association (LGA), sale of the claims has eliminated the risk of any further loss of value through issues such as depreciation of the Icelandic krona against sterling.

Further work will now commence to identify which authorities have not sold their outstanding claims against LBI.

LGA chairman, Sir Merrick Cockell, said: ‘This settlement has enabled a number of councils to fast-track their recovery of money from LBI and avoid any risk of further loss.

‘From day one, we have always been clear in our determination that local government would fight to recover the lion's share of the money deposited in Iceland at the time of the crash

‘We can justifiably say that the tenacious efforts of local government working together to get this money back have paid off,’ he added.

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Stockport Metropolitan Borough Council
Competitive
This is a BIG opportunity and a BIG year for Stockport. Stockport, Greater Manchester
Recuriter: Stockport Metropolitan Borough Council

Head of Transport Strategy & Road Safety

Warwickshire County Council
£76,594 - £84,443 per annum
We have a unique opportunity for you to shape, influence and create a better future for Warwickshire Warwickshire
Recuriter: Warwickshire County Council

Head of Trading Standards & Community Safety

Warwickshire County Council
£76,594 - £84,443 per annum
It’s an exciting time to join our Trading Standards & Community Safety team. Warwickshire
Recuriter: Warwickshire County Council

Transport Development Officer OCC615931

Oxfordshire County Council
£35,745 - £38,223 per annum
You will support senior colleagues in providing the highways and transport input to strategic development proposals. Oxfordshire
Recuriter: Oxfordshire County Council

Property Strategy and Major Projects Manager

West Northamptonshire Council
£52194 - £55943
West Northamptonshire Council is currently seeking to appoint theProperty Strategy and Major Projects Manager into its Property Strategy and Estates team. The Property Strategy and Major Projects Manager will have the opportunity to work on an extremely d Northampton
Recuriter: West Northamptonshire Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.