Millions still stuck in Iceland banks
MILLIONS of pounds of Gloucestershire’s money is still stuck in Icelandic banks following the financial crisis - and may not be returned for several years.
Gloucestershire County Council (GCC) has so far recovered £9.8million of the £12.5million invested in the banks, which collapsed in 2008 amid the financial crisis.
A GCC spokesman said it anticipated getting back the vast majority of the investment.
"We don't know exactly when and in what amounts we will receive future distributions but it is likely to be over several years," he said.
"The problem with getting it back is the same faced by any creditors of a company that has gone under - there are a list of creditors of which we are just one and it is up to the liquidator to pay the money back."
Stroud District Council (SDC), which had £2.5million invested in the country’s banks, has seen most of it returned but was also unable to give a definite timescale of when the remaining £600,000 would be recouped.
A SDC spokesman said: "We still have £600,000 outstanding in an escrow account, as have other authorities, earning interest at 4.2 per cent and we had £2.5million back last year.
"As far as I’m aware there is no set date for it to be returned but the Local Government Association is working on the case on behalf of many councils."
The county's six main authorities, including the county council, made a total investment of about £31million in the Icelandic banking sector.
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