West Sussex County Council could get back money lost in Icelandic banks

West Sussex County Council looks likely to get back most of the millions of pounds it invested in a UK licensed bank which went into administration last year.

The first payment could be made as soon as July and August.

The announcement comes in the wake of a report by accountants Ernst and Young, appointed after the bank, Heritable, went into administration following the September, 2008, collapse of its parent company, Landsbanki, based in Iceland.

The report makes a cautious assessment that investors could start to plan now for receiving the first 70 per cent of their money back.

Cllr Louise Goldsmith, the county council cabinet member for finance and resources, said: "It is welcome news. We will now be planning our forward programme for 2010/2011 on the basis that we will secure around 9m back.

"I remain confident that we will see more of our original investment of 12.9m being returned. The administrators may have spoken about creditors only securing 70 to 80 per cent of the investment, but they have to err on the side of caution.

"Heritable is still trading and making money, so the prospects of a better return are in place."

Cllr Goldsmith said the loss of the money was always going to be 'temporary'.