Icelandic Bank Money

[name removed] (Account suspended) made this Freedom of Information request to Solihull Metropolitan Borough Council

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The request was successful.

[name removed] (Account suspended)

Dear Solihull Metropolitan Borough Council,

Have SMBC received the 3 million pounds back that was lost in the Icelandic bank crisis back in 2008? If not why and how will they go abouts getting it back?

Yours faithfully,

[name removed]

Information Governance (Social Care & Performance), Solihull Metropolitan Borough Council

Dear [name removed]

 

Freedom of Information request – Ref 4612

 

Thank you for your enclosed request for information which we received
yesterday.  Your request is being considered under the terms of the
Freedom of Information Act 2000 (FOIA) and we will aim to provide you
with a response by 6 September 2013.

 

For your information, the Act defines a number of exemptions which may
prevent release of the information you have requested. If this is the case
you will be advised of any considerations, subsequent decisions and your
rights of appeal. There may also be a fee payable for this information,
this will be considered and you will be informed if a fee is payable.

 

You will be free to copy, distribute, transmit, adapt or otherwise exploit
any information disclosed to you providing to you that you do so in
accordance with the conditions which can be found on the council’s website
[1]http://www.solihull.gov.uk/about/copyrig....

 

Advice on the Freedom of Information Act is available from the Information
Commissioners Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9
5AF, telephone: 01625 545 700, website: [2]http://www.ico.gov.uk.

 

Yours sincerely

 

Beverley Haywood

Management Assistant (PA to Ian Ash)

Corporate Performance, Policy and Information Division

Business Transformation Directorate

Solihull MBC

 

Tel: 0121 704 6666

Email: [3][email address]

[4]www.solihull.gov.uk

 

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Information Governance (Social Care & Performance), Solihull Metropolitan Borough Council

1 Attachment

Dear [name removed]
 
Re: FOI Request – Reference Number 4612
 
Further to your request for information detailed below, here is our
response:
 
Have SMBC received the 3 million pounds back that was lost in the
Icelandic bank crisis back in 2008? If not why and how will they go about
getting it back?
 
We can confirm:
 
Early in October 2008, the Icelandic banks Landsbanki, Kaupthing and
Glitnir collapsed and the UK subsidiaries of the banks, Heritable and
Kaupthing Singer and Friedlander (KSF) went into administration. The
Council had £3.000m deposited equally across three of these institutions,
with varying maturity dates and interest rates.
 
The Local Government Association is co-ordinating the process for
reimbursement of sums invested and interest due from the Icelandic banks
on behalf of local councils.
 
To date we have been reimbursed as
follows:                                                                   
                                                                                               
                                                                    
                      
 
All monies within these institutions are currently subject to the
respective administration and receivership processes. The amounts and
timing of payments to depositors such as the Council will be determined by
the administrators/receivers.
 
On 28 May 2013, CIPFA updated its guidance on Local Authority investments
in Iceland (known as ‘LAAP 82’). In this guidance, CIPFA estimates the
proportion of claims that Local Authorities are likely to receive based on
the reports issued by the bank’s administrators. As at 28/5/13, the
situation was as follows:
 
Landsbanki – based on comments from the Winding-Up Board at the end of the
2012 calendar year, it is estimated that 100% of the claim will be
recovered.
Kauphthing, Singer & Friedlander – based on a report on 22/5/13 form KSF’s
administrators, CIPFA has estimated that 85.25% of the claim will be
realised.
Glitnir – the full amount of the Glitnir claim has been received, however,
19% of it remains in an escrow account in Iceland. This is due to currency
restrictions imposed by Iceland’s Central Bank preventing Icelandic Kroner
from leaving the country.  The balance is currently earning interest at a
rate of 4.2%.
 
The Local Government Association and its solicitors continue to represent
the interests of Solihull Metropolitan Borough Council and will aim to
secure 100% reimbursement of all claims.
You may copy, distribute, transmit, adapt or otherwise exploit any
information disclosed to you providing to you that you do so in accordance
with the conditions which can be found on the council’s website
[1]http://www.solihull.gov.uk/about/copyrig....
I hope this information is of interest and assistance.  If however you are
dissatisfied with the response you have received and wish to request a
review of our decision or make a complaint about how your request has been
handled you should write to the Corporate Information Governance Manager,
Corporate Performance, Policy and Information, Business Transformation
Directorate, Council House, Manor Walk, Solihull, West Midlands B91 3QB or
email [2][Solihull Borough Council request email].

Your request for an internal review should be submitted to us within 40
days of receipt by you of this response. Any requests received after this
time will be considered at the discretion of the Corporate Information
Governance Manager.

If having exhausted the review process you are not content that your
request or review has been dealt with correctly, you have a further right
of appeal to the Information Commissioner's Office (ICO) for a decision. 
Generally, the ICO will not make a decision until you have exhausted the
complaints procedure provided by the council.  The Information
Commissioner can be contacted at Wycliffe House, Water Lane, Wilmslow,
Cheshire, SK9 5AF, telephone: 01625 545 700, website:
[3]http://www.ico.gov.uk.
 
Should you have any further questions please do not hesitate to contact
me.
 
Yours sincerely
 
Beverley Haywood
Management Assistant (PA to Ian Ash)
Corporate Performance, Policy and Information Division
Business Transformation Directorate
Solihull MBC
 
Tel: 0121 704 6666
Email: [4][email address]
[5]www.solihull.gov.uk
 
 

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