Council receives further payment back on Heritable Bank investment

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East Lindsey District Council has received a further repayment on the investments linked to Iceland, this time from the Administrators of Heritable Bank.

Along with many other Council's across the Country, East Lindsey District Council invested with Heritable, a UK bank with Icelandic parents. On Friday December 18, the Administrators for Heritable paid £253,200 back on the original £2m investment plus £17,234.22 towards the accrued interest. This is the second payment the Council has received on the Heritable investment, the first was in July for £344,489.19.

So far the Council has had a total of £875,720 returned on its original £4 million invested plus £54,992.78 towards accrued interest.

The District Council is continuing to work hard to ensure the safe return of the public money that is still outstanding and is working with the Local Government Association nationally to ensure it is on the priority list for repayments where possible.

In October 2008, public sector organisations across the UK discovered that a number of Icelandic Banks and banks with Icelandic parents had gone into administration, putting £900m of public money at risk.

Portfolio Holder for Finance at the Council, Councillor Colin Davie, said: 'This is the second payment this month and we're heading in the right direction. However, we made these investments in good faith, as did many others, and we will continue to do everything we can to ensure we get every penny back as quickly as possible.'

All investments made by East Lindsey District Council were in line with national and local guidance and an independent review by the Audit Commission has confirmed this.