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

Friday, April 24, 2015
We have censored part of this image

Keith Fraser, the UKIP prospective parliamentary candidate for Hackney North and Stoke Newington has apologised after retweeting an Islamophobic cartoon which looks similar to Charlie Hebdo’s depictions of the Prophet yesterday morning.

Wednesday, April 22, 2015

Much loved poet and author Michael Rosen has been penning some sterling poetry on Twitter about Grant Shapps.

Thursday, April 16, 2015
David Dimbleby  Photo:  Jeff Overs/BBC/PA Wire

The five leaders not in government will debate each other on the BBC

Thursday, April 16, 2015
Struggling with who to vote for? Try one of these quizzes [Picture: Shuttleshock]

Completely undecided about who to vote for in the General Election 2015? You’re not alone - a whopping 33 per cent of British voters are unsure who to back. Fear not, we’ve compiled the best political quizzes to help you make your mind up.

Tuesday, April 14, 2015
This General Election race had less mud-slinging than most [Ben Birchall/PA Wire]

Everyone loves micropigs, and most people have a few butcher’s choice words to say about politicians. Now the two have been combined in a hammy election race.

Monday, April 13, 2015
Polish prince Janek Zylinski challenged Mr Farage to swordfight or

Nigel Farage could face his deadliest challenge yet, after a Polish prince challenged him to a duel in Hyde Park.

What is this?

Near You Now

Don't Miss...

We have censored part of this image

Keith Fraser, the UKIP prospective parliamentary candidate for Hackney North and Stoke Newington has apologised after retweeting an Islamophobic cartoon which looks similar to Charlie Hebdo’s depictions of the Prophet yesterday morning.