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

Thursday, February 4, 2016
Boris Johnson has today unveiled plans for the two giant traffic-busting tunnels (Picture: PA Images)

Fed up with the traffic en route to work? Boris Johnson may have the answer. The London mayor has just unveiled plans for two huge tunnels which would run under London and make commuting easier.

Monday, January 25, 2016
A new artwork by Banksy, depicting the girl from Les Misérables affected by tear gas, opposite the French embassy in Knightsbridge, London (Yui Mok/PA Wire)

New artwork by Banksy criticising the use of teargas in The Jungle refugee camp in Calais has appeared on a wall opposite the French Embassy in London.

Tuesday, January 19, 2016
Young man tweeting on mobile phone

A survey analysed tweets from across the capital between December 15 and January 14

Tuesday, January 19, 2016
Junior doctors will be on strike today

Next week’s junior doctors strike has been cancelled as progress is made in negotiations.

Tuesday, January 19, 2016
February 2015... three Bethnal Green girls at Gatwick heading for Syria

A new website giving parents and teachers advice on protecting children from extremism is being launched at Bethnal Green Academy in east London - where three pupils are thought to have fled to Syria.

Monday, January 11, 2016
Seven months pregnant Tulip Siddiq was allegedly told she was

Heavily pregnant Hampstead and Kilburn MP Tulip Siddiq was admonished for breaking Parliamentary procedure by leaving a debate to eat, it has been claimed.

What is this?

Near You Now

Don't Miss...

Competitions

Sony Smart Ultra HD 55'' LED TV

Enjoy the ultimate entertainment experience in your living room with the Sony Smart Ultra 55’’ LED TV. Be the envy of all your friends with this huge TV- you can change your living room into your own cinema! Get the boys around to watch the football or get the girls around to watch the DVD of 50 Shades.. this is a prize that everyone would enjoy! Stand a chance to upgrade your current entertainment system by wining this fantastic prize.

Read more
Surface Pro 4

Technology is ever evolving. We are constantly being shown new technology that is innovative, revolutionary and designed to make life easier for us all. Gone are the days of dial up modems and computers so large you needed half a room to store it. We are in the age of smooth, small and sleek. Companies are all trying their best to create technology that is easy to transport and guaranteed to be user friendly.

Read more

Latest Tech News

Transport