Administrators confirm council to recover millions lost in bank crash

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NEARLY all the £13m a council lost in the Icelandic banking collapse looks likely to be returned to them.

West Sussex County Council has been told it will recoup between £12.6m and the total £12.9m it deposited with Heritable Bank which was lost when its parent company Landsbanki collapsed in October 2008.

An initial payment was made in August 2013, but now the bank’s administrator has confirmed an additional payment will be made next month.

Council leader Louise Goldsmith said: ‘From day one we were determined to recover the money invested at the time of the crash.

‘I remember saying that it would take between 10 and 15 years so I’m delighted we’ve recovered this money for the taxpayers of West Sussex much sooner than that.

‘Our determination has paid off and we stand to recover between 98 per cent and 100 per cent of the money we invested. This is good news for the West Sussex taxpayer. The money will go back into supporting our key frontline services.’

In total, councils across the UK had more than £1bn invested with Iceland’s three largest banks which collapsed in 2008 – Landsbanki, Glitnir, and Kaupthing Singer and Friedlander.

It emerged following the collapse that the nation’s banking system owed an estimated six times the country’s GDP.