LGA recovers another £21m from Icelandic bank

24 Sep 13

The Local Government Association has helped to recover a further £21m that councils had invested in the collapsed Icelandic bank Landsbanki.

Four Icelandic banks failed when the country’s banking sector was hit by the credit crunch in 2008, putting just over £1bn of local authority investments in jeopardy.

Some £225m has now been recovered in all from Landsbanki and the LGA said it expected to get back the remaining £189m.

So far, local authorities have recovered £813.5m from the four banks Heritable, Kaupthing Singer & Friedlander, Glitnir and Landsbanki. 

LGA chair Sir Merrick Cockell said: ‘Despite our success we are very conscious that the job isn’t finished. The LGA will continue to work with the various winding-up boards to expedite remaining payments.’

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