Welsh councils to recover lion’s share of cash back from Iceland
20 April 2009
Responding to reports that councils could get around 80% of their money back from the failed Icelandic banks, Steve Thomas, WLGA Chief Executive said:
"We are working closely with the LGA to recover as much money as possible from the failed Icelandic economy through its banks’ assets. The outlook is positive with latest reports indicating that authorities can expect to get back most if not all of their investments, though it may take time.
Interest earned on council investments has generated hundreds of millions of pounds over recent years that has helped keep council tax rises low and to provide essential frontline services. Given the current economic downturn the councils affected are relieved that they will be getting the lion’s share of their investments back, which they will continue to invest prudently in the interests of their local communities.
The events of last October were part of a bigger financial crisis that affected not just councils but also other parts of the public sector as well as charities, businesses, individual savers and the Audit Commission.”
ENDS