A £5 MILLION investment by Buckinghamshire County Council in a threatened Icelandic bank will be recovered, according to the council's chief executive.

Chris Williams, the county council's top officer, said: "We understand that the money placed on deposit with Landsbanki is being held by the Icelandic government and will be returned to us in due course."

The council made the investment in July when, according to Mr Williams, "the bank was A rated by our treasury advisors."

He said: "The deposit was due to be repaid on October 7, only hours after they were taken into receivership.

"The council has robust procedures in place to manage its investment activity and minimise risk to the ratepayer."

Wycombe District Council has £2.5 million invested in Icelandic bank GLITNIR, which was nationalised yesterday. It is currently unclear if the money will be returned.

Chiltern and South Bucks district councils have not invested with Icelandic banks.