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.”

Latest Stories from SNAP.PA

If you’re a football fan, you remember it. Now Kieron Dyer has let us know exactly why Bowyer turned on him that day.

Read more

Dominican-born designer captivated the world with stunning creations.

Read more

Lady Gaga read out a fan’s emotional letter on stage, before dedicating two songs to his late mother.

Read more

Promotions

AGA Living Subscription

Every issue of AGA Living magazine is packed full of celebrity AGA owner interviews, interior and design features, ideas to inspire your culinary imagination, mouth-watering recipes and inspirational shopping ideas.

Dojo gives you hand picked recommendations for events, places and activities in London

Tired of always hearing about some amazing event in London after its gone, missing out on the best activities? That’s where Dojo comes in.

A woman has died after being hit by a tree that fell into a road as the remnants of Hurricane Gonzalo brought high winds to Britain. The pedestrian died at the scene in Kensington, west London, London Ambulance Service said. A spokeswoman said: “We were called at 11.40am to reports of a tree fallen on […]

It was one of the big innovations from Apple’s iPhone event back in September and now it’s arrived in the US.

Yet his artwork has already been vandalised in hours.

Bus driver dishes out quick punishment to would-be thief who tries to steal a passenger’s bag.

TOP Stories

14 minutes ago
Cheryl Evans, with a picture of her murdered son, Warren

The distraught mother of teenager who was stabbed to death almost a decade ago is appealing for witnesses to help find his killer.

49 minutes ago
@OccupyLondon took this photograph of London Assembly member Baroness Jenny Jones being arrested in Parliament Square.

Fifteen protesters have been arrested in Parliament Square as part of the Occupy Parliament demonstrations – including the Green Party peer Baroness Jones, who was promptly un-arrested once officers realised who she was!

13:35
Police want to talk to this man in connection with the incident (Pic: BTP)

A cannabis-smoking thug held a knife against a train passenger’s face after he was asked to extinguish his spliff.

London Bloggers

Wednesday, September 17, 2014
The cast, including Josie Lawrence and Mike Myers

Simon Collins catches up with the improv impresarios, who despite being the world’s longest-running comedy show with the same cast, have lost none of the razor-sharp wit:

Monday, September 1, 2014
Do you really need an explanation for that?! (Pic by Serena Marinelli)

If you’ve ever seen an Italian movie, you would probably know how important body language is in the culture.

Tuesday, August 26, 2014
Don't waste any of your harvest

If you are now inundated with ripe tomatoes, juicy green beans, berries and herbs, don’t leave them to go stringy or mouldy because the freezer can go a long way to making your crops last well into winter.