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.’
