LGA secures further £21 million from failed Icelandic bank

Published on Tuesday, 24 September 2013 12:13
Written by Sinead Fynes Black

The Local Government Association has helped councils across the country recover a further £21 million of taxpayers' money deposited with Landsbanki when the Icelandic bank collapsed during the credit crunch in 2008.

The latest payment takes to £225 million the amount recovered from the failed bank since the LGA fought successfully to secure priority creditor status for local authority depositors. Councils are expecting to recover all of the £414 million originally deposited with the institution, with additional payments expected in future instalments over several years.

Sir Merrick Cockell, Chairman of the LGA, said: "We are absolutely delighted that we have recovered a further £21 million of local taxpayers' money from LBI. This payment brings the total amount we have recovered from Iceland's failed banks to nearly £814 million, with more to come.

"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."

Source: LGA

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