Councils across Oxfordshire are amongst at least 40 local authorities across the country that have been caught up in the current Icelandic banking crisis and are waiting to hear when their investments in three Icelandic banks will be re-paid.
The councils, which between them have budgets in excess of £1.3bn, have at any one time, cash flow balances which are invested within the banking sector.
In common with all councils, this investment is regulated to seek cash security and uses national bank ratings to ensure credit worthiness. Councils also ensure that risk is spread by limiting the maximum exposure to any one institution – this applies in financially stable times as well as in the current turbulent times.
The Icelandic banks have been highly rated.

The Oxfordshire councils have £28.5m invested with the Icelandic banks, which is repayable at different dates over the year. The situation with the Icelandic Banks remains unclear and has changed several times over the last 24 hours – the council’s are pushing the government for a clear statement on the position of these funds.
How is each council affected?
The breakdown of the funds invested across the council is: £m
Cherwell District Council 6.5
Oxfordshire County Council 5.0
Oxford City Council 4.5
South Oxfordshire District Council 2.5
Vale of White Horse District Council 1.0
West Oxfordshire District Council 9.0

For more details, please see the Oxford City Council website