£413K lost in Iceland banks

West Lindsey Offices EMN-150319-084423001
West Lindsey Offices EMN-150319-084423001

West Lindsey District Council has reported final losses of £413,000 from its £7 million of investments in failed Icelandic banks.

Last month, members heard it was able to auction off £212,500 the Icelandic government had kept frozen in a Reykjavik bank.

“WLDC has taken a one and possibly only opportunity to release its remaining Icelandic investments, which was held in ISK in an Escrowed Account. The Central Bank of Iceland has provided this opportunity by means of an auction of ISK and allowing all creditors of Glitnir to participate,” said Group Accountant Tracey Bircumshaw.

The auction of ISK in WLDC’s account saw the £212,500 being sold for £157,975, resulting in a £54,525 loss.

“However, taking into account all transactions relating to the original investment in Glitnir (£1M) this has been fully recovered and a further £177k of interest has been received. The total invested in Icelandic Banks was £7M. We recovered £6,586,915.59.”