Icelandic banks to pay up most of the missing £7m

WEST Lindsey District Council could recover up to £6.4 million of the £7 million it has at risk in collapsed Icelandic banks.

The authority's latest financial advice suggests that Landsbanki – where the Council has 4 million invested –should be able to repay the council all it is owed. However, the authority is being advised to use 95 per cent as an estimate.

And Glitnir – where the Council has 1 million invested – appears to have assets significantly greater than the liabilities and a full repayment could be made.

But Heritable – where the Council has 2 million at risk – is not quite so promising where the total repayment is forecast at between 70-80 per cent.

Chairman of the district's overview and resources committee, Coun Sue Rawlins said: "Following the meltdown of the Icelandic economy in October last year this is the most encouraging news so far.

"Of course all the figures are estimates and exchange rates could impact on any final settlement. However, I have to agree that this is the brightest picture we have seen for some time."

But repayment is not going to happen overnight.

Money from Glitnir could arrive by the end of March next year but it is likely money from Heritable will return in phased payments starting in July next year and continuing until 2013.