STROUD District Council has been able to recover 98 per cent of the £3 million it held in investments with Icelandic banks in 2008.

Seven years ago the global financial crisis led to the collapse of the banking system in Iceland.

At the time, over 100 local authorities in the UK held investments in Icelandic banks.

Since then, Stroud District Council, along with other authorities, has been working with the Local Government Association and legal firm Bevan Brittan to have these deposits returned.

In March 2012, the council recovered £2.5 million of its deposits just before the Icelandic government brought in capital controls restricting the flow of money from Iceland.

In February this year, the council took part in a currency auction which recovered some of the outstanding balance.

The final balance was sold to Deutsche Bank in June and the money received in the past week.

A total of £2.933 million of the original £3 million investment has been recovered, and this sees the end of the council’s dealings in this matter.

Geoff Wheeler, leader of Stroud District Council, said: “We are extremely relieved that we have been able to recover the vast majority of the funds.

"It’s been a long, drawn-out and complicated process for us, which is now over.”