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| UK to demand Iceland money back | UK to demand Iceland money back |
| (10 minutes later) | |
| A delegation of Treasury officials has arrived in Iceland to seek assurances that UK depositors will not lose money as a result of its banking crisis. | |
| The meetings follow sharp exchanges between Gordon Brown and his Icelandic counterpart Geir Haarde on the crisis. | The meetings follow sharp exchanges between Gordon Brown and his Icelandic counterpart Geir Haarde on the crisis. |
| UK officials will demand that £1bn in funds invested by councils and other public bodies in collapsed Icelandic banks must be recovered quickly. | UK officials will demand that £1bn in funds invested by councils and other public bodies in collapsed Icelandic banks must be recovered quickly. |
| Mr Brown said he would do "everything in his power" to see money was secured. | Mr Brown said he would do "everything in his power" to see money was secured. |
| 'Finding a solution' | 'Finding a solution' |
| He said the UK authorities were continuing to investigate where UK deposits were being held in co-operation with Iceland's government. | He said the UK authorities were continuing to investigate where UK deposits were being held in co-operation with Iceland's government. |
| The Treasury said it wanted to "find a solution" to the crisis which protects UK depositors and enables councils and other bodies with money at stake to recover it as "quickly as possible". | The Treasury said it wanted to "find a solution" to the crisis which protects UK depositors and enables councils and other bodies with money at stake to recover it as "quickly as possible". |
| Government officials and representatives from the Bank of England and the Financial Services Authority, will spend the weekend tackling the crisis and will look to defuse a row between the two countries. | Government officials and representatives from the Bank of England and the Financial Services Authority, will spend the weekend tackling the crisis and will look to defuse a row between the two countries. |
| After the Icelandic government took control of three of its leading banks, Mr Brown strongly condemned Iceland's failure to guarantee British savers' deposits. | After the Icelandic government took control of three of its leading banks, Mr Brown strongly condemned Iceland's failure to guarantee British savers' deposits. |
| Mr Brown said Iceland's actions were "effectively illegal" and "completely unacceptable". | Mr Brown said Iceland's actions were "effectively illegal" and "completely unacceptable". |
| Chancellor Alistair Darling has announced that all UK savers affected by the bank crisis will be protected and has taken measures to protect UK deposits held by Iceland's Heritable and Kaupthing banks. | Chancellor Alistair Darling has announced that all UK savers affected by the bank crisis will be protected and has taken measures to protect UK deposits held by Iceland's Heritable and Kaupthing banks. |
| But the Treasury wants to find out how soon customers of UK online bank IceSave, which is not wholly regulated by the UK authorities, can get hold of their money after its parent Landsbanki collapsed. | |
| Geir Haarde on the 'painful process' facing the banking industry | Geir Haarde on the 'painful process' facing the banking industry |
| Landsbanki was declared insolvent on Tuesday, leaving 300,000 UK IceSave customers unable to access their accounts. | Landsbanki was declared insolvent on Tuesday, leaving 300,000 UK IceSave customers unable to access their accounts. |
| The UK government froze all UK-held assets of Landsbanki after it collapsed and threatened to take similar action against other Icelandic firms in the UK because of concerns about the "detrimental" effect of Iceland's banking crisis on the UK economy. | The UK government froze all UK-held assets of Landsbanki after it collapsed and threatened to take similar action against other Icelandic firms in the UK because of concerns about the "detrimental" effect of Iceland's banking crisis on the UK economy. |
| However, it has since partially lifted the Landsbanki freeze, exempting certain commercial activities from the order, and allowing business customers to access their accounts. | However, it has since partially lifted the Landsbanki freeze, exempting certain commercial activities from the order, and allowing business customers to access their accounts. |
| But Mr Haarde responded angrily to the move, saying it was "not very pleasant" to learn that anti-terror laws were being used against its companies and also blamed Britain for the collapse of Kaupthing. | But Mr Haarde responded angrily to the move, saying it was "not very pleasant" to learn that anti-terror laws were being used against its companies and also blamed Britain for the collapse of Kaupthing. |
| The BBC's Clive Myrie in Reykjavik said the turmoil in Iceland's economy meant its government was unlikely to be willing to give any assurances about foreign deposits. | The BBC's Clive Myrie in Reykjavik said the turmoil in Iceland's economy meant its government was unlikely to be willing to give any assurances about foreign deposits. |
| Council deposits | Council deposits |
| Ahead of Friday's meetings, the fate of funds deposited by British companies and public bodies in Icelandic banks remains unclear. | Ahead of Friday's meetings, the fate of funds deposited by British companies and public bodies in Icelandic banks remains unclear. |
| British firms are reported to have invested £12bn in Iceland's banks while the government has not offered to protect the investments of UK councils, police and transport authorities. | British firms are reported to have invested £12bn in Iceland's banks while the government has not offered to protect the investments of UK councils, police and transport authorities. |
| So far more than 100 local authorities in England, Wales and Scotland have revealed that they have deposits worth £842.5m in total. | So far more than 100 local authorities in England, Wales and Scotland have revealed that they have deposits worth £842.5m in total. |
| LARGEST CONFIRMED DEPOSITS Kent County Council, £50mNottingham City Council, £42m Transport for London, £40mNorfolk County Council, £32.5mDorset County Council, Hertfordshire County Council, £28mBarnet Council, £27mSomerset County Council, £25mHillingdon Council, £20mNeath Port Talbot Council, £20mWestminster City Council, £17mBrent Council, £15m Full list of councils affectedQ&A: Council funds at riskCouncils 'not reckless with cash' | LARGEST CONFIRMED DEPOSITS Kent County Council, £50mNottingham City Council, £42m Transport for London, £40mNorfolk County Council, £32.5mDorset County Council, Hertfordshire County Council, £28mBarnet Council, £27mSomerset County Council, £25mHillingdon Council, £20mNeath Port Talbot Council, £20mWestminster City Council, £17mBrent Council, £15m Full list of councils affectedQ&A: Council funds at riskCouncils 'not reckless with cash' |
| Public bodies, such as police authorities and Transport for London, have invested a further £100m while UK charities may have deposited up to £120m in Iceland's banking system. | Public bodies, such as police authorities and Transport for London, have invested a further £100m while UK charities may have deposited up to £120m in Iceland's banking system. |
| Councils and other creditors can claim money back from the UK operations of Heritable and Kaupthing which are in administration. | Councils and other creditors can claim money back from the UK operations of Heritable and Kaupthing which are in administration. |
| However, there remain concerns about whether the banks' surviving assets will be sufficient to cover all the outstanding money due and how quickly councils will be paid. | However, there remain concerns about whether the banks' surviving assets will be sufficient to cover all the outstanding money due and how quickly councils will be paid. |
| There is also uncertainty over any money held by Landsbanki itself and Glitnir, another Icelandic bank, which are in receivership. | There is also uncertainty over any money held by Landsbanki itself and Glitnir, another Icelandic bank, which are in receivership. |
| Speaking on Friday, Gordon Brown said he believed talks between the government and local authorities on how to minimise any financial damage would "yield results". | Speaking on Friday, Gordon Brown said he believed talks between the government and local authorities on how to minimise any financial damage would "yield results". |
| The Local Government Association wants the same blanket guarantee for councils as for personal customers of IceSave and other banks. | The Local Government Association wants the same blanket guarantee for councils as for personal customers of IceSave and other banks. |
| After a meeting with local government officials on Thursday, government ministers said they would deal with councils' financial needs on a case-by-case basis. | After a meeting with local government officials on Thursday, government ministers said they would deal with councils' financial needs on a case-by-case basis. |
| "We have agreed that we want to work together obviously to protect service levels but this is a complicated situation," Work and Pensions Secretary James Purnell said. | "We have agreed that we want to work together obviously to protect service levels but this is a complicated situation," Work and Pensions Secretary James Purnell said. |