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BURY WELCOMES RETURN OF£1.7M SLICE OF BCCI CASH

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Bury MBC has welcomed news of a£1.7m 'early Christmas present' after liquidators of the Bank of Credit and Commerc...
Bury MBC has welcomed news of a £1.7m 'early Christmas present' after liquidators of the Bank of Credit and Commerce International announced the declaration of a first dividend of 24.5% to be paid to creditors by the end of the year.

The council says it has fought a long and hard battle, and is increasingly confident of recovering even more of the £6m swallowed up in the crash.

Bury leader John Byrne said: 'Getting this money back is great news although sadly it will not help us as we attempt to meet the cuts the government is forcing us to make in the coming financial year.

'The cash we receive from BCCI is already committed in the budgeting system. Initially there was discussion about accepting less than 20% and we have always argued strongly against that. It is good to see our commonsense attitude has prevailed. Now we intend to continue to pursue a policy of getting back as much of our money as possible and court action is still likely against the Bank of England and others. We feel increasingly confident that the money owed will come back to us in the long term.'

When BCCI was closed down by the Bank of England five years ago it was the largest bank failure in history, leaving a $10 billion deficit. At the time is was feared that total recoveries to depositors would be negligible.

Earlier this year however, liquidators were able to conclude a $1.8bn settlement with the government of Abu Dhabi, the former majority share holder. In addition the liquidators, working closely with authorities in the United States, recovered more than $500m. As a result the first dividend is now to be paid.

Cllr Byrne added: 'Although we are pleased to get such a huge hunk of money back we still feel that there are people and institutions out there who have a responsibility for what has happened and have yet to be brought to task. Our primary aim is to ensure that the money we had taken from us is returned but we also feel strongly that those who are to blame should be made to pay.'

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