19 Mar 2012

Iceland money returned

Stroud District Council has at last recovered the majority of the money it had invested with the Icelandic bank, Glitnir. Along with 125 other councils, it had a proportion of its investment funds in Icelandic banks in 2008 when the banking crisis hit. Following a lengthy legal process, the Supreme Court of Iceland confirmed, in October last year, that these deposits should be treated as priority claims and would therefore be repaid in full. Most of the money is now back in the council's bank account.

Here is what Councillor Nigel Cooper, cabinet member for finance for Stroud District Council, said today: "We received ?2.5 million last week and the remaining amount, equivalent to approximately £0.5m, is safely held in the council's name, pending release in accordance with Icelandic capital control laws. I am delighted that our deposits have been recovered and that so far nothing has been lost. Despite this success we are very conscious that the job isn't finished. Along with other councils we are working with the Local Government Association to have the remaining money returned to us as quickly as possible."

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