FIFTEEN BRITISH universities may be left millions of pounds out of pocket after the collapse of the Icelandic banking system. Following the collapse of Iceland’s three largest banks, the total amount invested in Iceland by the institutions stands at approximately £85m, with £30m lost by Oxford University alone.

FIFTEEN BRITISH universities may be left millions of pounds out of pocket after the collapse of the Icelandic banking system.

Following the collapse of Iceland’s three largest banks, the total amount invested in Iceland by the institutions stands at approximately £85m, with £30m lost by Oxford University alone.

Other universities badly hit include Cambridge University, which has £11m at risk, as well as Manchester Metropolitan University (£10m), and the Open University (£6.5m).

University of Edinburgh funds are, however, believed to be safe. Spokeswoman Anna Smyth told Student: “I can confirm to you that the University has no investments in Iceland.”

While Gordon Brown has promised to secure individuals’ deposits in the troubled Icelandic banks, no such guarantee has been discussed for institutions, meaning that the chances of the universities affected recovering their investments are slim.

The government has been keen to play down the situation. Universities Secretary John Denham said: “Certainly, no university faces a level of exposure that would raise questions about its continuing solvency.”

“Students, businesses, charities and others may deal with universities with exactly the same level of confidence as before.”

Many of the universities concerned have been keen to state that the losses will not affect day-to-day administration.

Professor Brenda Gourley, vice-chancellor of the Open University said: “There is no threat to the university’s operations and staff and suppliers will be paid as normal.”

After the losses became known, Oxford University’s director of finance, Giles Kerr called for greater government help for universities.

In an open letter, he called on government bodies “to do all they can to protect the position of higher education institutions, which are vital to the country’s future prosperity.”

The banks concerned, Landsbanki, Glitnir and Baugur, failed last week due to debt as a consequence of the recent global financial turmoil.

Some in Iceland have blamed the British government for precipitating the collapse after it emerged that anti-terror legislation had been used to freeze some of the banks’ UK funds.

Other notable victims of the collapse have included local councils, whose losses are believed to be in the region of £800m, fifteen police forces, and the charity Cats Protection, which lost £11.2m.