More Icelandic assets return as Jones prepares to bow out
0Local authorities received another £25m from failed Icelandic bank Landsbanki this week. The amount, the third installment from Landsbanki, means that nearly half of the £416m owed by the bank has been paid back.
In all, just over £700m of £1.04billion has now come back to UK councils. The Local Government Association worked to coordinate legal actions to ensure that councils achieved priority creditor status and would therefore be among the first paid by the winding up boards.
More money is expected from Iceland in coming months. Sir Merrick Cockell, LGA Chairman, said: “We will continue to work with our legal representatives at Bevan Brittan and the banks’ administrators to ensure the further recovery of as much of the remaining £300 million as possible. We are confident that we will receive further money in the short to medium term.”
Next month sees the retirement of Stephen Jones, the LGA’s director of finance and resources. Jones joined the LGA in January 2007 and has spent considerable time during his tenure with the Association going to Iceland to help resolve the banks issue for councils in the UK.
