Investment reassurance

Stratford-on-Avon District Council is not one of several authorities reported to have lost millions of pounds due to collapse of Icelandic banks.

"This is a very worrying time but I would like to confirm that Stratford-on-Avon District Council is not one of the authorities with investments in the troubled Icelandic Investment banks," says Andrew Lovegrove, Head of Resources at Stratford-on-Avon District Council.

"These are unprecedented and unpredictable events and clearly, the financial markets are extremely turbulent right now. Although 60 councils have money at risk in Icelandic banks, our Council has no money in these banks.  However it must be emphasised the banks coming under pressure were all regarded as minimal risks, which underlines the event the country has been facing."

The District Council has reserves for future investments and often has big bills to pay, as employers and purchasers of services.  Most councils receive the Government grant quarterly to spend over the coming months. Councils invest this money in banks with solid credit ratings to accrue interest over a relatively short period of time and withdraw it when it is needed.