SCOTTISH Borders Council has written off around £620,000 from its disastrous £10 million investment in two failed Icelandic banks.

It had been feared the Newtown St Boswells-based local authority would lose millions after the Heritable and Landsbanki banks crashed in 2008. But the council confirmed it has managed to recoup 94% in each of its two individual claims against the banks.

A spokesman explained that more than half of the £5m Landsbanki debt had already been paid back but the balance of £2.4m was not due to be settled until 2018.

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The council confirmed it had recovered £4.7m in respect of the claim relating to Heritable Bank Plc.