Misery for charities over Icelandic banks

The collapse of popular Icelandic banks including Icesave and Kaupthing Edge recently has resulted in misery for many charities, as many had put substantial sums of money into the high interest accounts being offered by these banks in order to make the most of the money for the charities. Many charities fear that they may have lost millions of pounds as a result of the collapse.

The Cat’s Protection League, for example, had over £11 million in a UK bank owned by Kaupthing. The National Council for Voluntary Organisations has revealed that around sixty of its members fear that they could have lost huge sums of money as a result of the collapse of the banks.

Whilst the government in the UK said that it would cover 100% of UK savers’ deposits in these banks after the Icelandic government failed to deliver, nothing had been said about the protection for money belonging to charities and local authorities.

An official from the NCVO said that government officials were looking at what could be done to help charities to get their money back. He said: “What’s important is the charities which have been affected by this come forward. If we’re going to secure adequate compensation for them, with the strength of the UK government, it’s important they come forward.”