Havering Council recoups £1.5million from collapsed Icelandic bank

10:50 20 February 2012

Romford town hall

Romford town hall

Archant

Havering Council has received its first repayment of £1.5million from an Icelandic bank, which collapsed in 2008.

The payment from Landsbanki, which was one of three Icelandic banks that suffered a financial crisis, is in addition to the £4million already received from another Icelandic bank Heritable.

The council, along with several other local authorities and public sector organisations, invested money in the Icelandic banking system because, it said, at the time it met with the council’s investment criteria and was highly rated by the credit ratings agency.

Havering Council invested £6million in Landsbanki and £6.5million in Heritable. The third to collapse was Glitnir, which the council had not invested in.

The council expects to get back most of the money it invested in both banks.

The repayment from Landsbanki follows a court victory after the local authorities’ preferred creditor status, which gives them priority to claim their money ahead of other creditors, was challenged.

But after a three-year legal battle led by the Local Government Association (LGA) on behalf of all 123 UK Councils affected, Iceland’s Supreme Court found in favour of the councils.

Havering was able to recoup money from Heritable Bank earlier as there was no challenge to the preferred creditor status.

Cllr Roger Ramsey, cabinet member for value, said: “This reinforces our expectation to make an almost full recovery of this money for the future benefit of our residents.

“It was made possible following the court battle and I’m glad the Icelandic Supreme Court recognised that UK local authorities should have priority over other creditors’ claims.”

Sign up for our news alerts today!

Our editors' picks for the day's top news delivered to your inbox or phone.

Sign up for email alerts Sign up for mobile alerts
1
2 3 4 5 6
7

Latest London politics news

Monday, March 30, 2015
Can you guess which politicians make up these coalition lovechildren?

As the election draws near, there’s been lots of talk about another coalition, which got us thinking: What would it look like if Boris Johnson and Ed Miliband had a baby?

Monday, March 30, 2015
The five-and-a-half-week general election campaign kicks off today (Pic: Getty Images)

The general election campaign kicked off this morning with David Cameron warning voters they face a “stark choice” after five years of coalition government.

Friday, March 20, 2015
With the election coverage reaching fever picth here are some interesting things you may have missed (Photo by Oli Scarff/Getty Images)

In amongst all the political rhetoric, endless polling and debate about having debates there’s plenty of interesing things you might have missed about the General Election. That’s why we’re here to fill you in:

Friday, March 20, 2015
Check out our guide to making sure you can cast your vote on May 7 (Photo by Matt Cardy/Getty Images)

Whether you’re a first-time voter or you’ve just not got round to it yet – our handy guide to voting will help you make sure you don’t miss out on the chance to make your voice count.

Thursday, March 19, 2015
The letter from Sarah Sackman - clearly signed off as MP for Finchley and Golders Green

When trying to win an election confidence in your ability is key - but signing off letters as MP despite the election still being 50 days away is probably a bit presumptuous.

Tuesday, March 17, 2015
(Photo by Ben A. Pruchnie/Getty Images)

The three chancellors George Osborne, Ed Balls and Danny Alexander took scrambled to get their hands on bank notes today during a Crystal Dome cash grab.

What is this?

Near You Now

Don't Miss...