A final tranche of money lost by more than a dozen local councils in the Icelandic banking crisis seven years ago has now been recovered.In total, £1.05 billion in deposits was lost to councils in England and Wales in 2008, with the majority of that amount already recouped.

But now, a final outstanding amount of over £5 million has been secured by more than a dozen local authorities bringing to an end their involvement with the Icelandic banks.

On the basis of legal advice received from the law firm Bevan Brittan (and each authority’s own analysis of the financial position) Icelandic krona (‘ISK’) owned by those councils but trapped in an escrow account in Iceland was sold to Deutsche Bank.

The proceeds of the sale were paid in pounds sterling, and bring to a close a long process of legal action in respect of the insolvent estates. Each authority involved in the process received the same price, and the money was safely received by them last week.

Bevan Brittan lead partner Virginia Cooper said:

“We are very pleased that almost all the public money that was feared lost in the Icelandic banking crash has now been recovered. This brings to an end a long running saga for these councils – and is a significant achievement for local government working together in a combined legal initiative."

There remain a number of other authorities with some small sums still to be recovered.

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences. For more detailed information about the cookies we use, see our Cookies page.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collection and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone.
For more information on how these cookies work, please see our Cookies page.