Thursday, 9 October 2008

Icelandic Banks

The Council's press team have made the following announcement with regards to investments held by the Council in Icelandic Banks which are experiencing several difficulties in the current climate.

As noted in the press release discussions are ongoing to work out a way forward, because if the 'investments' are lost it would have a serious effect on the council and the services it runs.

Further details will be flagged up on this when they are available.

Council confirms investment in Icelandic Banks

High Peak Borough Council is amongst a large number of other local authorities and public bodies that have investments with the Icelandic bank Landsbanki and its UK subsidiary Heritable Bank.

The Borough Council has investments of £1 million in each of these banks. The two-year fixed term investment in the Heritable Bank was made in November 2006 and is due to be returned in November 2008. The one-year investment with Landsbanki was made in April 2008 and is due to be returned in April 2009.

At the time of making the investments both banks were within the ratings approved by the Council's Treasury Management Strategy and these ratings were only downgraded within the last few days.

Borrowing and investment advisors Sector have kept the Council continually advised of the situation and they, along with other city advisors, will be assisting the Local Government Association in their discussions with the Government on the way forward.

Emily Thrane, Deputy Leader and Executive Councillor for Corporate Services said: "Two million pounds is a great deal of money to a district council of High Peak's size and without government intervention the effect of losing such a sum would have serious consequences to council services."

"At the moment we are taking our own professional advice and are looking to work with the Government in the interests of our council taxpayers."

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