Two councils which invested £11 million in a failed Icelandic bank are still waiting to hear if they will get their money back.

Bristol City Council invested £8m in Landsbanki and North Somerset £3m and were thought to be likely to get back just 10 per cent of their investments. Administrators of Heritable Bank, the UK arm of Landsbanki which collapsed last October, have indicated creditors could get up to 80 per cent back.

But North Somerset and Bristol City Council invested in the main Icelandic arm of Landsbanki, whose investors have not yet been told what they will receive. The first payments to creditors are expected to be made in July and August.