Leader welcomes return of Icelandic bank deposit
Release date: 4 July 2016
Cotswold District Council has reported that its £2m deposit in Icelandic bank Glitnir has been fully recovered and that it has also received £155,000 in interest payments.
Leader Cllr Lynden Stowe, is pleased that the matter has been finally resolved:
“In line with central government advice, CDC and many other local authorities invested in the Icelandic banking sector during the early 2000s. This collapsed in 2008 when the global financial crisis took hold and, since then, we have followed a legal process to recover the full balance of our investment. We received a repayment of £1.7 million in March 2012 but, due to currency controls within Iceland, about £400,000 remained in Iceland in a Krona interest-bearing escrow account. The Council recently participated in a currency auction in Iceland to convert this outstanding balance of Icelandic Krona into Euros. These funds have now been converted into pounds sterling and returned to the Council. As a result, I am pleased to tell local taxpayers that we have now recovered our full £2 million investment and have also received £155,000, reflecting interest and exchange rate movements”