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Test case soon for Icelandic cash

PUBLISHED: 09:58 22 April 2010 | UPDATED: 17:30 30 June 2010

The fate of millions of pounds of taxpayers' cash frozen in Icelandic banks will hinge on a make or break court case - after Norfolk County Council was picked as a test case in a legal battle.

The fate of millions of pounds of taxpayers' cash frozen in Icelandic banks will hinge on a make or break court case - after Norfolk County Council was picked as a test case in a legal battle.

The county council had £32.5m invested in three Icelandic banks when they collapsed and had their assets frozen by administrators in October 2008.

The council had hoped to recover just over £23.5m of that money, but a crucial court case within the next month could see millions wiped off the tally.

Norfolk County Council had £15m in Landsbanki, £10m in Kaupthing and £7.5m in Glitnir when the Icelandic government took them into administration.

The Local Government Association is co-ordinating recovery action on behalf of local authorities with help from lawyers Bevan Brittan and Icelandic firm Logos and some cash has already been recovered.

But Norfolk County Council has now been picked by the winding up boards of Glitnir and Landsbanki to be among a handful of councils to act as test cases to determine how much money councils should get back.

Great Yarmouth Borough Council has £2m invested in Icelandic banks.


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