This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8007464.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 2 Version 3
Councils may recoup Iceland cash Councils may recoup Iceland cash
(about 6 hours later)
Councils which invested hundreds of millions of pounds in Icelandic banks have been given indications that they could get most of their money back. Councils which had money in Icelandic banks have been given indications they will get most of it back.
Banks in Iceland were taken over by the authorities when the country's financial system collapsed in October. Banks in Iceland, holding about £1bn of UK public money, were taken over by the authorities when the country's financial system collapsed in October.
Administrators for Heritable Bank, the UK arm of Landsbanki, have indicated its creditors could get up to 80% of funds back - equating to about £300m.Administrators for Heritable Bank, the UK arm of Landsbanki, have indicated its creditors could get up to 80% of funds back - equating to about £300m.
It is thought about £1bn of UK public money was deposited in Iceland's banks. The Tories said that still meant about £186m of public money would be lost.
If the loss of interest is factored in, it means town halls will have lost more than £200m, they calculate.
'Higher tax'
Shadow local government secretary Caroline Spelman said: "Whatever gloss is put on the news, it is unacceptable that local taxpayers will have lost £200m. This will ultimately feed through to higher council tax or less investment in frontline services."
Heritable Bank is a UK bank which was placed into administration after the parent bank, Landsbanki, was nationalised by the Icelandic government.Heritable Bank is a UK bank which was placed into administration after the parent bank, Landsbanki, was nationalised by the Icelandic government.
The leader of Kent County Council, Paul Carter, said he was very encouraged by the news. BIGGEST COUNCIL DEPOSITS Kent County- £50mNottingham City - £42mHaringey Borough - £37mNorfolk County - £32.5mDorset County - £28m class="" href="/1/hi/uk_politics/7660741.stm"> In full: Councils facing losses
"They're hoping to make their first payment towards the end of July and August, 70 to 80 pence in the pound they're predicting," he said. The leader of Kent County Council, which had nearly £50m invested in Iceland's banks, said he was very encouraged by the news.
"They're hoping to make their first payment towards the end of July and August, 70 to 80 pence in the pound they're predicting," said Paul Carter.
"If markets improve, we may get more than that, closer to 90%."If markets improve, we may get more than that, closer to 90%.
"A lot of the lending book within the Heritable Bank is in property investments. If the property market begins to start to have an upside, we could make an even better recovery," he added."A lot of the lending book within the Heritable Bank is in property investments. If the property market begins to start to have an upside, we could make an even better recovery," he added.
Council criticismsCouncil criticisms
BBC business reporter Ben Shore said local government officials had also indicated that negotiations over deposits at other Icelandic banks were going well.BBC business reporter Ben Shore said local government officials had also indicated that negotiations over deposits at other Icelandic banks were going well.
The Audit Commission, which itself deposited £10m in Icelandic banks, has previously said most councils had "heeded warnings" about the declining credit worthiness of Icelandic banks during 2008 and taken action accordingly.The Audit Commission, which itself deposited £10m in Icelandic banks, has previously said most councils had "heeded warnings" about the declining credit worthiness of Icelandic banks during 2008 and taken action accordingly.
However, it has said that some did not do this, describing a handful as behaving "negligently".However, it has said that some did not do this, describing a handful as behaving "negligently".
It reserved particular criticism for institutions which continued to deposit money after 30 September, when the credit ratings of Glitnir and Landsbanki were downgraded to "adequate".It reserved particular criticism for institutions which continued to deposit money after 30 September, when the credit ratings of Glitnir and Landsbanki were downgraded to "adequate".
This is below that deemed acceptable under guidance to town halls.This is below that deemed acceptable under guidance to town halls.
The two Icelandic banks went under just over a week later.The two Icelandic banks went under just over a week later.