Iceland’s Glitnir makes first repayment
0Yesterday saw a further £180m paid back to UK councils by the failed Icelandic bank Glitnir.
A total of around £530m will be paid to Glitnir’s priority creditors, which include 53 local authorities and other public bodies. The money is the second instalment of payments from Icelandic banks this year after Landesbanki paid out £100m in February.
Payments will be denominated in several currencies including Euros, Sterling and US Dollars. The Icelandic Krona portion of payments will be paid into an escrow account to await clearance from the Icelandic Central Bank due to currency control restrictions.
Councils that will receive money include: Gloucestershire, Kent, Stroud, Solihull and Tamworth.
Local Government Association Chairman Merrick Cockell commented: “We are absolutely delighted that we have been able to help our members recover all of the £180m of council taxpayers’ money from Glitnir. (The) payment brings the total amount recovered from Iceland’s failed banks to nearly £300m, with more to come.”
“Despite our success we are very conscious that the job isn’t finished. We will continue to work with the various winding up boards on behalf of our members to expedite remaining payments.”
