ROTHERHAM Council is the latest in several local authorities across the country in trouble as Icelandic banks head for financial meltdown.
The council is one of at least 20 in the UK that has large sums of money invested in troubled Icelandic banks.
Rotherham Council confirmed it has two investments at risk - £1.95m with parent bank Landsbanki and £1.80m with its subsidiary Heritabl
e Bank, based in the UK.
Local Government Authority has claimed that services are not at risk but the Government Treasury has made no guarantees it will protect the invested money.
Andrew Bedford, strategic director of finance at the council, assured residents it is working hard to recover the money and seek protection from the Government.
"Like other local authorities, the investments were made based upon the buoyant economic market. We made these investments in these banks as they were top rated and offered an excellent rate of interest. The current volatile global financial market has resulted in this difficulty," he said.
"Rotherham Borough Council's annual budget is £700m and we are confident that the current situation will not impact upon service delivery."
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