Almost half of the £5m deposited by a Lancashire council in two failed Icelandic banks has now been recovered.
A repayment of around £1m has been received by South Ribble Council following the Icelandic Supreme Court’s decision before Christmas to place UK authorities at the head of the queue to get their outstanding cash back.
South Ribble Council had a total of £5m in two Icelandic banks before the country’s dramatic economic collapse in the autumn of 2008.
The council had short-term deposits of £2 million with Heritable, of which £1.4 million has now been paid back to the council. The judgement and latest payment of £1m is in relation to the £3 million long-term deposit with Landsbanki.
Coun Stephen Robinson, South Ribble Council’s cabinet member with responsibility for finance and resources, said: “I’m delighted with the progress made in recovering our Icelandic deposits so far.
“This is a very different scenario to the one painted by some people in 2008 and early 2009, when they were suggesting that all the money we had in Iceland was lost forever.”