Issue - meetings

Report by Michael Hudson, Service Director - Finance.

In accordance with the Treasury Management Strategy as adopted by Council in February 2013, Cllr Dick Tonge, Cabinet member presented the treasury management report for the first quarter of 2013/14 ending 30 June 2013.

This report reviewed management actions in relation to:

a)    the PrIs, Trls originally set for the year and the position at the 30 June 2013;

b)    other treasury management actions during the period; and

c)    the approved Annual Investment Strategy.

Cllr Tonge updated Cabinet on funds recovered from the Icelandic banks. The Council had recovered just over £8.4m of the original £12m deposited in 2008. A further repayment from the Administrators of Heritable Bank of £1.510 million, was received on 23 August 2013 which takes the total recovered from Heritable Bank to nearly £8.5 million (representing approximately 94p in the £ of the £9 million invested in 2008).

Based on current information, the Council was expecting to recover up to 95% of its deposits with Heritable. The Landsbanki Winding-up Board had not yet indicated when they would be making the next distribution but it was expected to recover 100% although repayments in full were likely to be completed over several more years.

Resolved:

That Cabinet note the contents of the report presented in line with the Treasury Management Strategy.

Reason for decision

To give Cabinet an opportunity to consider the performance of the Council in the period to the end of the quarter against the parameters set out in the approved Treasury Management Strategy for 2013/14. The report is a requirement of the Council’s Treasury Management Strategy.