No central bail-out for the losers on the cards

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The Independent Online
Many local authorities and various other public sector bodies had pension funds managed by Barings Asset Management (BAM) or cash on deposit with Barings bank.

Investments managed by BAM can still be realised at any time, but cash deposits with Barings bank are frozen - and this includes surplus cash balances from BAM.

The Department of Environment made it clear yesterday that there would be no central bail-out of these losses for local authorities.

A spokesman said last night: "There will be no direct compensation in the form of money."

A rescue by the Dutch financial group ING may well stave off any shortfalls, which are calculated here by the local authority money magazine, Public Finance.

Cambridge District Council: Lent £750,000 to Barings Bank in 1994, due for repayment in July. But borrowed £1.9m due for repayment in June. Legal indication that must repay loan and join list of creditors.

Clwyd County Council: Had about £35m of its total £268m pension fund with BAM. Specific instructions to the managers were to invest in the Far East and use no more than 2.5 per cent of the holding for transactions. That £875,000 is at risk.

Durham County Council: Refused to say how much of its pension fund was managed by BAM or how much was vulnerable surplus cash.

East Cambridgeshire District Council: Has lost £1.5m deposited with Barings bank, about 7 per cent of its £26m total investment programme.

Essex County Council: Had £200m, 25% of pension fund managed by BAM. Cash balance of £8m deposited at Barings bank.

Hampshire County Council:Has £15m at risk in surplus cash from a fund managed by BAM out of a total £1bn pension fund. No cash deposited with the bank by council.

Huntingdonshire District Council: Has a £2m deposit at the bank now frozen, 6% of its £30m total investment.

Kent County Council: Had £310m of its £850m pension fund with BAM and has £7m in surplus cash at risk. No cash was invested at the bank.

Lincolnshire County Council: Had £2m cash investment with Barings on loan from 3 February and due to be repaid this week. That is 5% of a £40m portfolio.

London Concessionary Fares Scheme: Funded by London boroughs. Had £10m deposited at the bank due to be repaid Wednesday.

Manchester Airport: Reported to have £3m invested in Barings bank.

Northumberland County Council: Had £125m of its pension fund with BAM and estimates that up to £2m was in the form of surplus cash when deposits were frozen.

Penwith District Council: Has lost up to £750,000 in short-term investment arranged in December.

Powys County Council: BAM manages £65m of the pension fund of which £3.7m was cash surplus.

Shropshire County Council: Estimates £100,000 - £150,000 of share dividends deposited at the bank could be lost.

South Tyneside Metropolitan District Council: Has £2m on short-term deposit which is at risk. Of this, £1m was surplus cash from the £1.2bn Tyne and Wear superannuation fund.

Thurrock District Council: Estimates short-term deposits at the bank add up to £1m, about 1% of its total investment.

Trafford Metropolitan District Council: Reported to have invested £2m in Barings bank.

West Glamorgan County Council: Had £35m, or 10%, of its pension fund invested with BAM.

Windsor and Maidenhead District Council: Deposited £1m at Baring Brothers bank due to be repaid in July.

The Prince's Trust: Had about £1m deposited at Barings bank.

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