£120m Scottish schools deal hit by Iceland banking crisis

The Icelandic banking crisis has hit the £120m Aberdeen City Schools PFI deal where work could grind to a halt if the NYOP consortium delivering the scheme cannot raise alternative funding after the collapse of its main backer Landsbanki.

Icelandic developer Nysir, which leads the consortium, confirmed it is looking for alternative sources of funding for Aberdeen City's 3R scheme.

Director Sigfus Jonsson said: "We are already working to get other banks to step in. I don't anticipate any problems refinancing, but it may take a little time."

Pihl, the Danish contractor building the schools, said: "We hope to find a solution soon."