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Police chiefs will recover bank money
Lancashire Police chiefs are confident of recovering all the cash they invested in an Icelandic bank which found itself stricken during the credit crunch.
Like many local authorities across the country, Lancashire Police Authority invested hundreds of thousands of pounds in the Icelandic bank Landsbanki.
The authority invested £668,000 in the bank, which collapsed during the credit crunch in 2008.
But now the authority is confident that it will eventually recover the money.
A report to Lancashire Police Authority said: “The Police Authority was one of many UK and Dutch local authorities with such deposits, all of whom were granted priority creditor status by the Icelandic Supreme Court at a hearing in Reykjavik on September 14 and 15, 2011.
“As a consequence the Winding Up Board announced on March 9, 2012 that it anticipated recoveries in the Landsbanki Administration would exceed the book value of recognised priority claims by around ISK 121bn, taking into account the sale of its holding in Iceland Foods.
“Estimated recoveries are some 9% higher than the value of priority claims, and it is therefore now considered likely that UK local authorities will recover 100% of their deposits, subject to potential future exchange rate fluctuations.” On October 7, 2008 the Icelandic Financial Supervisory Authority took control of Landsbanki after it went into administration.
The winding up board of the bank paid out an initial amount in December last year with a further payment expected imminently.
Lancashire County Council invested £10m in Landsbanki, by far the biggest amount in the county.
In February, the first instalment of £3m was repaid and bosses hope to retrieve the majority of it, although they will have lost out on interest payments in the meantime. Leader Coun Geoff Driver said at the time the council hopes to recover 98% of the total.
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Sunday 19 May 2013
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