More than £4.3m returned to North East Lincolnshire Council from banks
NORTH East Lincolnshire Council has received more than half of the money back from doomed Icelandic banks.
As reported, the council invested a total of £7 million in the banks before they collapsed in 2008.
The authority was slammed by the Audit Commission for investing taxpayers' money, even after warnings about the banks' prospects were known. A total of £4.5 million was invested in Kaupthing, Singer And Friedlander Ltd and £2.5 million was invested in Landsbanki.
Now, more than £4.3 million has been returned.
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A council spokesman said two payments from the winding-up board of Landsbanki totalling £1,048,000 had been paid.
The payments follow successful legal action on behalf of local authority creditors in the Icelandic Supreme Court.
The spokesman said: "The positive outcome means that we can expect to eventually receive 100 per cent of the original sums invested."
At Kaupthing, Singer and Friedlander (KSF) the administration of the bank continues to progress as expected. Recoveries currently stand at 73p in the pound with a forecast estimated to be around 86p in the pound.
At East Lindsey District Council, £4 million of taxpayers' money was invested in Icelandic banks and £3.1 million has been returned.
Administrators of Heritable Bank have made regular payments along with Glitnir and Kaupthing, Singer and Friedlander.