Two-thirds of Icelandic bank investments repaid to district council (From Kidderminster Shuttle)

Two-thirds of Icelandic bank investments repaid to district council

7:50am Tuesday 5th March 2013 in News

MORE than 66 per cent of the £9 million invested in Icelandic banks by Wyre Forest District Council has been recovered.

Council leader John Campion gave an update at a full council meeting last Wednesday which said a total of £5.9 million had been repaid from three Icelandic banks.

He also gave details of recent dividend repayments including a 13th instalment from Heritable Bank of £27,000.

The council had £9 million invested in the banks at the time of the collapse of Iceland’s banking system in 2008.

This includes £3 million in Landsbanki and a total of £6 million in two Icelandic-owned UK banks, £5 million in Kaupthing, Singer and Friedlander and £1 million in Heritable Bank.

Mr Campion’s announcement also stated further repayments were expected "in due course" from Landsbanki, where £1.4 million has been recovered.

Labour Councillor Nigel Knowles asked Mr Campion if the district council would see repayments come back more quickly given the improved state of the Icelandic economy.

Mr Campion said: “Our relationship is with banking organisations and isn’t with the individuals of Iceland. We are intending to get very impressive returns on the original investments.”

He added that he would prefer to get the most value back possible rather than be concerned with the speed the investments are returned.