Councils can claim against Landsbanki: RvS
The government was wrong to ban local and provincial councils from attempting to claim back the millions of euros they lost when Iceland’s Landsbanki went bankrupt, the council of state said on Wednesday.
The cabinet did not give a proper explanation of its decision to impose the ban, the council – the highest legal body in the country – said.
Local government had some €200m in Landsbanki. Unlike private individuals, they are not covered by savings guarantees.
Ministers stopped councils taking their own action against the Icelandic bank because they said it would damage their own efforts to get compensation for consumers who had lost their savings.
Noord Holland is the biggest creditor. It had €78m in Landsbanki. Amstelveen, Naarden, Dordrecht and the island of Texel are among the 15 local governments which lost money.
It is not yet clear what steps local governments will now take.
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