Nottingham City Council has been paid back almost half of the money it invested in a collapsed Icelandic bank.
Heritable Bank, in which the council had £15.6m when Iceland's banking system collapsed, has recently repaid £650,000, taking the total to over £7m.
A council spokesman said: "It's hoped that most of the rest that's owed will be returned over time.
"Further regular repayments are expected - with a similar amount anticipated this autumn."
Nottingham had invested £42m in Icelandic banks - the second highest amount tied up in Iceland by a UK council.