Nuneaton Council has lost £3M in Iceland.

Back in Feb I was at the cabinet meeting which was talking about waste and recycling. On the same agenda was the treasury management report. I used my opertnity to tell the council how mad it was to borrow £5M as council borrowing and then save it in savings accounts.
Now £3 million is lost in iceland.

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Last year the council borrowed £13.75M and had £8.9M of investments. They voted to borrow £5.25M more and intest it so they could make money on the difference in rates they could borrow at and get in savings rate. The rates were better as the money was at risk.