Leader 'confident' over deposits

The council said it had not been given a formal time limit

A Worcestershire council leader says he is confident £9m tied up in failed Icelandic banks will be returned to it over the coming months.

John Campion, from Wyre Forest District Council, said it had not been given a formal time limit over the issue, but services had not been affected.

A total of £5m had been invested in Kaupthing, Singer and Friedlander, £3m in Landsbanki and £1m in Heritable.

Mr Campion said the council expected to lose about £250,000 in interest.

But he added it could have been worse, if the government had not cut interest rates.

He said: "There'll be creditors meetings of all three institutions over the coming weeks.

"A formal timetable of how the companies will be deconstructed will be announced."