Suffolk counts cost of global meltdown
Web exclusive: MILLIONS of pounds of Suffolk taxpayers' money may be in jeopardy as a result of the current global economic turmoil, The Evening Star can reveal.
MILLIONS of pounds of Suffolk taxpayers' money may be in jeopardy as a result of the current global economic turmoil, The Evening Star can reveal.
It has emerged that Ipswich Borough Council has previously invested millions with troubled Icelandic bank Landsbanki, which has been taken over by the Icelandic government to keep it afloat.
Last year Ipswich Borough Council had £2million invested with the bank.
It is unclear how much the council currently has invested with Landsbanki and how secure that cash is.
A spokesman for the council said the authority has invested a “small proportion” of its savings portfolio in two Icelandic banks but was unable to say exactly how much.
He said the authority had no investments with internet bank Icesave, a subsidiary of Landsbanki.
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Icesave is not currently allowing customers to take money out of their accounts or to put in deposits.
According to the Local Government Association (LGA), which represents councils in England and Wales, more than 20 councils in the UK are believed to have deposits in Landbanksi or Heritable, which was run by Landbanksi.
The UK government has pledged to guarantee the savings of individuals who have invested money with Icesave although it is not clear if this extends to public sector organisations.
The LGA says despite the situation it does not expect "significant financial problems" in the short term as town halls put money in a wide range of investments with different banks and frontline services should not be affected.
It is calling for councils to have the same protection as private savers.
It is unclear whether Suffolk County Council and other authorities across Suffolk have investments with Landsbanki or other at risk banks.