According to U.K. Treasury and Icelandic officials, “significant progress” has been made over frozen U.K. investments in failed Icelandic banks. Arrangements have been agreed “in principle” for a quick payout to depositors in Landsbanki’s closed internet bank Icesave. Talks are ongoing. There is still the tricky question of the return of almost £1 bln in funds invested by U.K. councils and public entities.
Council leaders are to hold talks with the Icelandic ambassador this coming week to seek assurances over their investments. They also plan to press the Reykjavik government to ensure deposits held by U.K. councils in the newly nationalised Icelandic banks are fully repaid. There are growing fears some U.K. councils are so cash-strapped they’ll not be able to pay their workers this month. Gotta feeling it won’t be long before my council tax is headed North again.
