£9m recycling company loan 'could be lost'

Investment banker fears the worst

- REBECCA MCCURDY

THE chairman of Scotland's state-owned investment bank has conceded that the full £9million loan given to Circularity Scotland could be lost as the firm is forced into administration.

The Scottish National Investment Bank (SNIB) used taxpayer cash to invest in the firm set up to run the deposit return scheme (DRS).

Willie Watt told MSPs a "significant" sum of the loan could be lost, before admitting the bank faces losing its full investment. He said: "It's fair to say there will be significant losses on the loan that we have made to Circularity Scotland.