Rutland Council leaders this week vowed that the £200,000 lost in the Icelandic bank collapse won't affect services in Rutland.
The council put a million pounds into the Heritable Bank last July - three months before its accounts were frozen in the deepening global financial crisis. It now seems that investors should get back at least 80% of their money. They tried to withdraw the money ast the first sign of problems, but their request was refused.
Council leader Roger Begy (C) said that it was good news, and that after looking at the detail 80% was a conservative estimate. It is more than some other authorities would be getting.
The million invested was capital money received yearly from the Government to spend on projects with a shelf-life of more than a year. If projects aren't ready to launch money is invested to earn interest to spend on other services. The repayments will start in July, but more money could be recouped if the council hold off for longer. The 80% could be clawed back by 2012, but a longer wait could give a better return
Deputy leader Terry King said that although £200,000 was a regrettable loss, it was a small amount compared to the loss of interest due to lower interest rates. Rutland County Council tried to withdraw its money from the bank at the first sign of trouble but the request was refused.
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