South Scotland

Scottish Borders Council welcomes Icelandic case result

Scottish Borders Council expects to recover almost all the money it had in a collapsed Icelandic bank following a test case victory.

The Icelandic Supreme Court confirmed Kent County Council's preferred creditor status last week.

It means SBC should be able to recoup the majority of the £5m it had deposited with Landsbanki.

However, the council said it was awaiting confirmation the court ruling would apply to non-test cases.

The decision came more than three years after the failure of Icelandic banks.

SBC said that it would have been facing a loss of £2.9m had the legal judgement not been secured.

Depute leader Neil Calvert said: "The news that local authority deposits are being regarded as preferential is very welcome and will minimise the impact on the Borders taxpayer to the level already provided for in the 2010/11 annual accounts."

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