Page last updated at 15:59 GMT, Friday, 10 October 2008 16:59 UK

Council had 15.5m Iceland cash

Landsbanki branch
More than 100 councils revealed they had deposits in Icelandic banks

A Surrey council which had 15.5m invested in two Icelandic banks has said it still remains "in a very strong financial position".

Reigate Council said it had more than 60m in reserves after many years of prudent financial management.

Councillor Mike Buttery said: "There is absolutely no immediate threat to the delivery of our services."

UK Treasury officials are in Iceland to demand that funds invested by local councils are recovered quickly.

Reigate and Banstead Borough Council said it had 15.5m in Glitnir and Landsbanki.

'Rainy day cash'

Councillor Buttery added that there were strict guidelines on where councils could invest, and said: "Until recent times the Icelandic banks met all the government criteria for risk and had excellent credit ratings."

He explained the local authority held "significant contingency funds for a rainy day" and it would be "inappropriate for councils to live hand to mouth".

On Thursday, Surrey County Council confirmed it had previously tried to withdraw its 20m investments in two Icelandic banks.

It said its investments of 10m in Glitnir and 10m in Landsbanki would not affect frontline services because the council had "sufficient funds".

So far more than 100 local authorities in England, Wales and Scotland have revealed that they have deposits worth 842.5m in total.


SEE ALSO
UK seeks return of Iceland cash
10 Oct 08 |  UK Politics
Icelandic saving has 'no impact'
09 Oct 08 |  England
Councils 'not reckless with cash'
10 Oct 08 |  UK Politics
In full: Councils facing losses
09 Oct 08 |  UK Politics

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