Kent confident of more than 90% of Iceland cash

Kent County Council has been advised by the Chartered Institute of Public Finance and Accountancy (CIPFA) that it is likely to get over 90% of its total deposits in Icelandic banks returned.

KCC deposited more than £50M in three Icelandic banks – Heritable, Glitnir and Landsbanki – and many feared the majority of the money could be lost.

But the council’s latest advice from CIPFA’s local government investment panel suggests most will be returned.

The amount other authorities can expect back depends where their money was invested.

The report states with reference to Heritable ‘it would therefore be appropriate for authorities to recognise an impairment based upon an 80% recovery’.

For Glitnir: ‘It would be appropriate to use the full amount of the priority creditor when calculating the recovery amount’ and for Landsbanki: ‘a likely range for the recoverable amount of 90% – 100%’ … ‘authorities should take the mid point of the range and assume that the recoverable amount will be 95%.’

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