News
Iceland bank fiasco: Council speak out
Following on from the recent story we posted about Hertfordshire County Council having money deposited in Icelandic banks, the council has issued the following statement on its website:
"We have £28 million deposited with four Icelandic banks and although this is a very substantial amount, it is 8 per cent of our total deposits.
"We manage our investments to secure the best return we can for tax payers, but without taking risks with institutions that have poor credit ratings. We only invest in highly-rated banks and our investments are constantly reviewed. These Icelandic banks were all ‘A’ rated when we made our investments and no-one could have predicted the present situation.
"Our money is spread amongst a large number of institutions, specifically to minimise risk.
"The national and international financial situation is still developing and we are working closely with the Government and the Local Government Association to recover our money.
"Even if the money is not recoverable, Hertfordshire is a strong council and we can deal with the situation.
"This is a problem but it is not a crisis and we will keep locals updated as the situation develops. This situation does not put at risk the services which residents rely on," the statement continued.
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