SBC a ‘priority’ to get Icelandic funding back

SCOTTISH Borders Council will have priority status over other creditors as they desperately try to get money back from the failed Icelandic banks.

SBC has been identified as one of 91 local authorities following a test case from the District Court of Iceland.

The case related to Landsbanki, in which SBC had £5million worth of deposits when it collapsed in 2008, and Glitnir.

It is understood the move could save council tax payers in the Borders as much as £3million.

Councillor Neil Calvert, SBC’s depute leader (finance), said: “This is good news – it means that councils will be at the front of the queue when it comes to getting our money back following the collapse of the Icelandic banks.

“It allows us to confirm the original return estimate of 85-90 per cent, which we are now more confident of getting back from Landsbanki.

“It moves Landsbanki a stage nearer to making dividend payments, which is what we all want to see.”

The cost of litigation to date amounts to less than one per cent of the money that is expected to be recovered.