ALMOST £1 million is yet to be paid to the council following the Icelandic bank crash of 2008.

Local authorities around the country invested more than a billion pounds into Icelandic banks at the time of the collapse, with a total of £9m put in by Wyre Forest District Council.

The sum had been placed into three banks, including £3m with Landsbanki, £5m in Singer and Friedlander (KSF), and £1m in Heritable.

Official council figures from its financial accounts for 2015/16 revealed £134,000 had been handed back to the District Council last year, yet – eight years on – almost £1m is still to be returned.

Councillor Nathan Desmond, cabinet member for resources, said: "The £134k favourable variance is in relation to the original overall £9m Icelandic investments at the time of the banking crisis in 2008.

"It relates to an improvement in the forecast returns for the two remaining investments outstanding with the Heritable Bank Limited of £20,357 and Kaupthing Singer and Friedlander of £812,500, giving a total sum outstanding in relation to the original £9m investment of £832,857.

"Indications from the administrators are that we should receive this balance of £832,857 over the next 12 to 18 months."

The returned investment, which was released to the council’s general reserves, includes £37,030 from the Icelandic Impairment Adjustment and £96,870 from the Icelandic Earmarked Reserve.

Payments to the District Council first began in February 2012 after a decision from the Icelandic Supreme Court to uphold the council’s priority creditor status was made the previous year.