Council chiefs heading to Iceland

About 100 councils are thought to have invested in banks in Iceland

Finance chiefs from Kent County Council (KCC) are to lead a delegation to Iceland where �50m of council funds is invested in collapsed Icelandic banks.

Along with officials from the London borough of Barnet, they will hold an initial creditors meeting this week.

KCC, which has �50m tied up in Landsbanki, its UK subsidiary Heritable and Glitnir Bank, said it would be representing all UK local authorities.

A spokesman said: "KCC is determined to fight to get every penny back."

It emerged last month that Kent has the biggest single UK council investment in Iceland's banks.

KCC, along with Barnet, will be representing the interests of all those local authorities exposed to the two Icelandic banks

Councillor Nick Chard

Officials hope that the �18m locked in the UK-based Heritable will be safeguarded but they are hoping to gain positive responses from bosses at Landsbanki and Glitnir about their deposits.

Administrators for the two banks are expected to provide details of the size of the banks' liabilities over their remaining assets, helping indicate how much investors may be able to get back.

The KCC spokesman added that the meeting would help it "better understand the situation in Iceland and determine how we can start recovering the money deposited there".

Finance cabinet member, Councillor Nick Chard, said: "KCC is working hard behind the scenes to co-ordinate councils affected by this and will, along with Barnet, be representing the interests of all those local authorities exposed to the two Icelandic banks.

"This is the start of a process and we will continue to be as open as possible and tell Kent residents what is happening."