Icelandic funds thaw

Cambridge is expecting to recoup a “substantial” sum of its investments stuck in Iceland.

The University is confident it will recoup investments until now frozen in Iceland.

It was revealed in October last year that Cambridge might have to write-off £11m following the gaping fissures that sank the island’s financial industry.

A Uni spokesman at the time revealed that they had £8.5m in the Heritable bank, a UK subsidiary of Landsbanki, and £2.5m in the bank Glitnir.

Churchill bursar, Jennifer Rigby, expressing concern about the financial outlook last autumn, branded it “very, very grim”.

The University confirmed that the forecast was now less frosty: “Overall we are anticipating a substantial recovery in time.”

What is in the balance only represents the tip of the University’s investment iceberg –three per cent of Cambridge’s investments.

A representative added: "There are no knock-on impacts on the university's spending plans.”

The financial crisis hit Iceland especially hard due to the collapse of the three biggest banks, Glitnir, Landsbanki and Kaupthing in October last year.

Cambridge City Council investments with Heritable have already begun to be returned. Landsbanki are expected to begin repaying the money it owes in 2010.

The Higher Education Funding Council, working closely with the Government, are attempting to recover all other universities’ investments in the region.

The news comes days after the Icelandic government lifted restrictions on new krona investments earlier this month, moving toward a broader easing of emergency capital controls, after satisfying donors it had made progress on addressing creditor claims stemming from the island’s financial collapse.

Perhaps if Kerry Katona had been advertising the Island, recovery might have come quicker.

After all it is alleged she likes the 'ice'.