|Iceland Funds Have Finally Defrosted|
Ealing will get £2million it has been owed
Council money feared lost during the Icelandic banking collapse will be repaid after all.
Ealing - and many other public bodies- had invested in the Icelandic bank Glitnir, but it was feared £2million would have to be written off after the bank got into difficulties in 2008.
Ealing joined forces with 123 other UK councils in the fight for the money. The Local Government Association coordinated the legal challenge and authorities such as Kent County Council, which had £50million at risk, were used as test cases.
This month Iceland’s Supreme Court ruled that British councils would be among the first creditors to have their money repaid.
That means Ealing's entire £2million which had been invested should be returned, as well as some interest.
Councillor Yvonne Johnson, cabinet member for finance and performance, said:
“We’re delighted the court has decided that councils should be the first to be repaid what they are owed, but it has been a long battle to get this far. With the £85million in cuts we’re grateful for every penny.”
Winning the court challenge means councils now have ‘preferential creditor status’ so will be the first to get their money back and will recover all they invested.
The cabinet is expected to consider early next year how the recovered funds should be spent.
What do you think the £2million should be used for? Discuss on the forum
22 November 2011