Dorset Recovers Money Lost in Financial Crisis
8:06am 5th February 2014
Dorset County Council's recovered just over 94 per cent of the money it originally deposited in Iceland with Landsbanki.
He council reportedly had just over 28 million pounds of public money tied up in the Icelandic bank.
It's now got most of its money back by selling its claims against the insolvent estate through a competitive auction process.
The money was paid in pounds sterling and funds have already been received.
Cllr Robert Gould, Cabinet member for corporate resources, said:
"The sale means that we have recovered 94.5 per cent of the amounts that were originally deposited with LBI in 2008.
"We are obviously delighted that we have recovered a very large portion of our LBI deposits. The sale of our claims represents a clean break. Dorset County Council is therefore now no longer a creditor of LBI."
The administration of the insolvent estate may continue for a number of years. By selling the claim the county council has removed this uncertainty and this has allowed the local authority to put the money received from the sale to use supporting vital public services.
Dorset County Council is also continuing to receive payments from the administrators of Heritable bank.