MILLIONS of pounds of Lancashire taxpayers’ money invested in an Icelandic bank has not been returned on time.
The three-month, £10million investment by Lancashire County Council in the Landsbanki bank, which has been taken over by the Icelandic government, was due to be returned on Wednesday.
County council bosses will now lodge a formal claim for the cash. and will still include it in their accounts along with estimated interest.
Yesterday resources chief Tony Martin told the cabinet: “The money was meant to be returned on December 3 - sadly it did not turn up.
“We now have a claim that we are making through the Local Government Association and the government.
“My understanding is it is a fairly asset-rich bank and should be able to pay back its liabilities, but rather than rush things we want to make sure we get it all back in good order”.
Coun Martin also revealed the council would consider repaying and reinvesting some of its advanced borrowing in order to take advantage of the lower interest rates announced by the Bank of England yesterday.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here