It has emerged that Aberdeen City Council signed a public private partnership agreement with a consortium in February.

The deal involved the consortium designing, building, financing and operating the schools over 30 years. Under the project, two new secondary and seven new primaries will be built, with another primary being refurbished.

The Icelandic government nationalised Landsbanki earlier this week. Seven other Scottish councils have confirmed they have money on deposit with banks in Iceland.

The Scottish Government has called on the Treasury to bail out local authorities affected by the collapse of Iceland's financial system.

Finance Secretary, John Swinney has written to Chancellor, Alistair Darling asking for reassurance that council deposits would be safeguarded by the UK Government.