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Money in Icelandic Banks

Requested on
Tue 28th February, 2012
FOI 1748
Information provided


Full details of your organisation’s investments in Icelandic financial institutions prior to their collapse in 2008, and the progress of efforts to recoup the money.

I would like the response to include:

Details of the legal/financial advice sought and received before making the investment;
The full amount invested, over which period;
The full amount recouped so far – and from which sources;
The official estimate of how much you can expect to recoup overall.


Between 17 April 2007 and 10 March 2008 Charnwood Borough Council made 26 investments with Icelandic banks or their subsidiaries.  The amounts invested ranged from £1 to £2m and the length of investments ranged from 11 days to 364 days.
To date Charnwood Borough Council (Charnwood) has received £704k from the administrators of the Heritable Bank Plc.  We have registered our claim with the administrators of the Heritable Bank Plc and we have also registered a claim, as unsecured creditors, with the Heritable's parent bank, Landsbanki Islands HF, in Iceland.
General treasury advice was obtained from a commercial treasury services provider but they did not advise on individual investments.
The particular investment that is still partially outstanding was for  £1m, which was invested for 364 days from 30 January 2008.
£704k has been received from the administrators of Heritable Bank Plc to date.
The administrator of Heritable Bank Plc has predicted a recovery of between 86p and 90p in the pound