Cllr George Beckett, Leader of Winchester City Council Commented “the Council has an investment of £1m with the Icelandic Heritable Bank.
The investment is due for repayment on 16th March 2009.
“The Council uses external treasury management advisors and took account of the good credit rating of the Bank at the time the investment was made.
The Treasury Management Strategy is based upon national guidance from the Department of Communities and Local Government.
“The Council supports the representations by the Local Government Association to the Chancellor of the Exchequer to protect the interests of Council Tax payers.”
The Council currently has 40 individual investments with an approved range of banks and building societies totalling £32m. The maximum investment in any one institution is £3m.