South Scotland

Scottish Borders Council spreads Icelandic bank losses

Scottish Borders Council is to use a borrowing scheme to fund its £1m losses following the Icelandic bank collapse.

The Scottish government consent will allow the authority to spread the costs over the next five years.

SBC had a total of £10m deposited with both Landsbanki and Heritable when they collapsed in October 2008.

The authority said it now anticipated recovery of 95% of its Landsbanki deposit and 85% of its funds with Heritable, leaving £1.021m to find.

SBC expects to be able to repay the borrowing over the next five years from its £270m annual revenue budget.

Depute finance leader Neil Calvert said: "The offer of consent to borrow from the Scottish government together with the latest decision from the Icelandic Court provides us with an opportunity to account for our losses and to minimise any negative impact on our services."

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