Skip to main content

Local Government: Bank Services

Volume 498: debated on Wednesday 28 October 2009

To ask the Chancellor of the Exchequer what timetable has been established for the repayment to local authorities of monies deposited with Icelandic banks. (296283)

Some local authorities are creditors of the failed Icelandic banks. Those creditors of UK subsidiaries of the failed Icelandic banks will be paid out in accordance with UK insolvency law. We understand that the administrations of Heritable Bank plc and Kaupthing Singer and Friedlander are progressing. However, the timetable for the administration process is a matter for the administrators. Creditors of the banks in Iceland will make recoveries from the winding up of those banks in accordance with Icelandic law. The timetable for creditor payouts is governed by the process that has been adopted in Iceland for those institutions.