Councils confident in recovering Icelandic deposits

Councils that have invested up to £1bn in Icelandic banks have a reasonable chance of recovering their deposits.

Creditors of Heritable Bank, the UK arm of Landsbanki will recover up to 80% of funds, or £300m, the Financial Times reported.

The Conservatives, however, are not pleased with the result, saying that this was simply putting a positive spin on a situation where £220m of taxpayers' money has been wiped out.

Conservatives in local government claim that this loss will have to be recouped in the form of higher council tax and diminished investment in frontline services.

Further reading:

Baugur goes into administration

Icelandic bank to sue government over administration

E &Y takes over Heritable’s loan book