Tuesday, 29 November 2011

Council to lose £200,000 in Icelandic banks

SOLIHULL Metropolitan Borough Council will get most of the cash it invested in failed Icelandic banks back, but lose almost £200,000, Meriden MP Caroline Spelman has said.

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They will get £2,805,000 of the original £3 million back, she said.

Mrs Spelman said a ruling by Iceland’s Supreme Court that councils with cash in two banks which collapsed are to get priority creditor status.

She said: “Overall, SMBC can expect to receive £2,805,000 of the original £3 million back. The payments will be made over time, so the repayments won’t be received immediately.

“However, this is very good news for this borough and, over a period of time, the repayments will help to keep council tax low while SMBC continues to deliver a good service. “

Many councils lost cash when a series of banks went under in 2008. Solihull council had cash in Landsbanki, Glitnir and Kaupthing.

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