Senior councillors that form the council’s cabinet heard how financial management had reduced the council’s total borrowing from £167.6 million last year to £155.7 million this year.

This comes amidst news that East Renfrewshire Council lost out on £12,000 when an Icelandic bank went bustin 2008, ruining £1 million worth of council shares.

The report, by the chief executive of East Renfrewshire Council Lorraine McMillan, said: “Overall the report demonstrates a well managed treasury function within the council.

“The average interest rate on long-term borrowing has increased over the previous year, reflecting economic conditions.

“The council continues to adopt a prudent approach to treasury management and in particular the percentage of variable rate loans at 9.24 per cent is well below the council’s approved upper limit of 30 per cent.

“The resulting stability in borrowing assists the council in responding to the current national economic pressures.” However the same report also shows that the council is set to lose £12,000 from an initial investment of £1 million after an Icelandic bank went into liquidation in 2008.

Heritable Bank, a subsidiary of Landsbanki, ceased trading and councils across the UK lost out on share investments.

However council bosses have recovered £988,238 from liquidators, no other payments are expected.

The report read: “The Council currently has £1m invested in the Heritable Bank, a UK based subsidiary of the Icelandic Bank, Landsbanki. The company was placed in administration on 7 October 2008.

“The latest creditor progress report issued by the administrators Ernst and Young outlined that the return to the creditors was projected to be 94p in the £ by the autumn of 2013.

“As at March 31 2014 the council had received 14 payments totalling £988,238, no further dividends are expected.”