Ealing Money in Jeopardy After Iceland Rule Out Bank Repayment Bill

Council remain 'confident' £2m investment will be repaid

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Iceland is to hold a national vote on the payment of compensation to the UK following the collapse of the country's banks.

President Olafur Ragnar Grimsson said he would not sign a controversial bill to repay £3.1bn to the UK and Dutch governments.

Landsbanki, which ran the Icesave accounts, collapsed at the height of the banking crisis in 2008.

Local authorities lost a total of £1 billion - Ealing had around £2million invested.

LGA deputy chairman Richard Kemp said £110 million had already been repaid to councils, and more money was expected early in the new year. This latest announcement could put that in jeopardy.

The Icelandic government has seen significant public opposition to the bill to repay the funds- the president received a petition signed by a quarter of the country's population.

President Grimsson said that the Icelandic public had the right to choose.

"It is the job of the president of Iceland to make sure the nation's will is answered," he said.

"I have decided... to take the new law to the nation. The referendum will take place as quickly as possible."

No date for the referendum has yet been set.

An Ealing Council spokesperson said:

'' We will continue to work with the LGA to get our money repaid and we remain confident that this will happen. In the meantime Ealing remains a financially strong council and residents can be reassured that our financial reserves are very robust.''



January 5, 2010