Almost all of the £5m deposited in two failed Icelandic banks by South Ribble Council has now been recovered.
A final payment made to the council means that it has now got back all of its £3 million long-term deposit with Landsbanki, having already received 94 per cent of its £2 million short-term deposit with Heritable.
It takes the total recovered to more than £4.9 million.
The deposits became frozen during the meltdown of Iceland’s economy from the failure of all three of its major banks in October 2008.
Coun Stephen Robinson, the council’s cabinet member for finance and resources, said: “We have worked very hard to pursue the return of our frozen Icelandic deposits, and I’m absolutely delighted that we’ve now recovered almost all of the money.
“This is a very different scenario to the one painted by the doom merchants in 2008 and early 2009, when they were suggesting that all the money we had in Iceland was lost forever.
“The important thing to understand, however, is that this is not a windfall. On the advice on the Local Government Association, the deposits have remained on our balance sheet since 2008, and we had full confidence that our money would be returned.”