Caerphilly gets £2.9 million of Icelandic bank money back (From Campaign Series)

Caerphilly gets £2.9 million of Icelandic bank money back

9:00am Monday 1st February 2010

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CAERPHILLY council was repaid £2.9 million of the £15 million it lost when two Icelandic banks the authority had invested in collapsed.

The council expects to have been repaid the full amount by July 2013.

The authority had invested £5m in Icelandic Landsbanki and £10m in its UK subsidiary Heritable before they collapsed in October 2008.

In answer to questions submitted by Darran Valley councillor David Hardacre to a full council meeting held on Tuesday evening, the authority’s leader Lindsay Whittle issued a written reply saying the council has received two payments so far.

He said the administrators of Heritable paid back £1,628,258 in July last year and a further £1,278,231 in December.

Regular payments are scheduled to take place until July 2013 under a schedule agreed with the administrators, the Local Government Association, the Chartered Institute of Public Finance and Accountancy and legal advisors.

The repaid money has been placed in the Debt Management Office and has already been accounted for in the authority’s finances, so it will not be used to supplement the forthcoming budget.

Cllr Whittle said: "According to the schedule the next repayment could be made in March, but this is based on a proposed schedule that could change.

"Council members will be updated when monies are returned."

At the time the banks collapsed it looked unlikely the council would recover any of its money, which it had been investing up until the month before.

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