Newark and Sherwood District Council recovers Icelandic cash

More than 80% of the money Newark and Sherwood District Council invested in failed Icelandic bank Glitnir has been returned, the authority said.

The council made a £2m fixed-term deposit in January 2008, for a period of one year when it said Icelandic banks were "among the safest".

The investment has been held in Glitnir's reserves while claims were resolved by Icelandic courts.

The council said it had now received 81% of its initial investment.

The remaining 19% will be returned when the Icelandic government lifts restrictions on the krona to allow it to be converted into sterling.

Services 'not affected'

David Dickinson, Newark and Sherwood District Council's director of resources, said: "We have had to wait a long time for this money to be returned but we have always believed that we had a strong case.

"I can say that at no times has it affected the service we deliver to the public."

In 2008, when the Icelandic banks failed, the Local Government Association coordinated claims from more than 120 UK public authorities, including county and district councils and fire and police authorities.

In October 2011, the Icelandic Supreme Court ruled these authorities should be classed as priority creditors and were therefore entitled to first call on the banks' assets.