Westminster Council's £5.75m still to be repaid by Iceland
By londononline | Sunday, February 17, 2013, 22:00
Westminster City Council invested £16.25 million in Icelandic Banks. £5.75 million is still to be repaid, but this is unlikely before 2018. Labour Councillors maintain that the loss of this investment "has led to cuts in Council services".
The City Council deposited £16.25 million with two Icelandic banks which are currently in administration:
Heritable Bank: £9.85 million
Landsbanki Bank £6.40 million Council Officers say that this amount had been written down to £6.1 million in the Annual Accounts (31 March 2012). So far, Westminster has received a total of £7.2 million from the Administrators of Heritable and approximately £3.2 million from the Administrators of Landsbanki.
Officers say that up to 85% should be recoverable from Heritable as from the administration and around 90% from Landsbank.