Icelandic banks had been a concern for some time: Matthews

9.27.01pm BST (GMT +0100) Thu 9th Oct 2008

Commenting on the £50 million Kent County Council had deposited in now collapsed Icelandic banks, Liberal Democrat Parliamentary Candidate for Folkestone and Hythe, Neil Matthews, commented:

"The recent effects of the credit crunch hit has seen the sudden downfall of many banks but the stability of the Icelandic Banks has been a source of worry some time. Their credit ratings have been reduced over the year and their share prices tumbled some time ago.

"Questions had been raised, particularly by Lib Dem Lord Oakeshott in the summer, concerning the security of their deposits. All of these markers would have been available to Kent County Council and its advisors but it is becoming apparent no action had been taken to reduce KCC's exposure.

"I hope the Council is successful in having its £50 million returned - otherwise the future will indeed be bleak for Kent and its tax payers."