CEREDIGION Council is set to lose just £11,000 from its almost £5.5m investment in three failed Icelandic banks, councillors have heard.

The council had the £5.5m invested in three banks — Heritable, Glitnir and Landsbanki — frozen after the banks were hit by the financial crisis in 2008.

Ceredigion was just one of a string of councils that saw investments in Iceland frozen with lengthy negotiations taking place over the last seven years to recover as much of that money as possible.

While it had initially been feared the council could lose anywhere between £1m and tens of thousands of pounds, Stephen Johnson, the head of finance, said it was now expected that the council would lose just £11,000 with a further payment of £10,000 expected to be the last payment.

The council has already recouped the vast majority of the money with just £21,000 remaining from Heritable, but Mr Johnson said recent discussions had centred around a £10,000 payment which would be the last received by the authority.

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