Comhairle nan Eilean Siar PRESS RELEASE 17 May 2000 For Use: Immediately

Comhairle nan Eilean Siar has received a third dividend from the liquidators of BCCI which brings the total amount recovered since the crash of 1991 to 68%.

The Comhairle will pay the money directly to the Scotland Office which at the time of the BCCI crash made a loan to the Western Isles Council. However, bank charges for the Comhairle will be reduced by £79k.

Speaking today, the Vice-Convener of the Comhairle,Mr. Roddy Murray, said:

"This latest dividend is very much to be welcomed and takes our recovery rate to over two thirds of the original sum, leaving an outstanding amount of £4.7m which the Comhairle will continue to pursue through the liquidators. Given this latest development, we will be pressing the other financial institutions to consider their position and obligations in this matter. The Comhairle will be pressing these institutions to ensure that, apart from recovering its losses, the Comhairle receives appropriate compensation and damages.

The Comhairle is obliged to pay this latest dividend directly to the Scotland Office but the consequent reduction in bank charges incurred by the Comhairle is a welcome development."

Liquidators Deloitte & Touche is seeking £600 million in damages and £400 million in interest for BCCI creditors from the Bank of England.

Ends

Issued by Nigel Scott
Communications Officer