Council’s victory on Icelandic cash
Wednesday 16th November 2011, 10:16AM GMT.
A decision which could see up to £4 million of Powys taxpayers’ money retrieved has been described as a ‘huge victory’ by council bosses.
Powys County Council had the money invested in two Icelandic Banks – Landsbanki and Glitnir – which went into receivership in 2008.
But following a decision by Iceland’s Supreme Court the authority is hoping to get back almost all of its money.
More than 100 local authorities – including Powys County Council and Bridgnorth District Council – were left facing potential losses of millions following the collapse of the Icelandic Banks in 2008.
Councillor Tony Thomas, council’s cabinet member for resources, said the authority would now be expecting to receive 100 per cent of the money invested in Glitnir and 98 per cent from Landsbanki.
He said: “This judgment means that UK local authorities’ claims have been recognised as deposits with priority status over other creditors’ claims.”
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And take note that they are getting the money back because of measures that Icelandic authorities took immediately in the collapse. Passing an emergency law putting depositors’ priority above creditors’.
Credit institutions were not happy about this and have been fighting the law for years now, which has now resulted in this verdict that the law holds, depositors will get their money back before creditors.
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Exactly so.
Banks were left to fail whilst depositors took priority.
And the Icelandic economy is doing OK now as it hasn’t got banker’s bail-out debts around its neck and its currency is not in the Euro zone and automatically devalued, so can get on building an economy again.
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