WREXHAM'S Glyndwyr University is among the public institutions with cash caught up in the Icelandic banks crisis, it emerged yesterday.
The university, formally Newi, confirmed it has up to £3m in Kaupthing Singer & Friedlander, a bank registered in the UK by its Icelandic parent company.
The cash had been earmarked for building projects at the institution, which is Britain's newest university.
A spokesman said: "Glyndwr University prides itself in its strong financial management strategy, and operates a virtually zero-risk approach to its investment portfolio, making deposits only in AAA-rated UK banks.
"This is not an overseas investment and we expect this situation will be resolved through administration.
"We stress this unfortunate event will in no way affect the day-to-day operations of the university.
"We remain financially strong, having for the seventh year produced a healthy surplus on our end of year accounts in 2007/08."
Assembly finance minister Andrew Davies said three Welsh universities, including Aberystwyth and University of Wales, had a total of £8.1m at risk in the Icelandic banks.
Nine councils - investing a total of £60m - have said they were involved. Three police authorities invested a combined £10m and with the universities, the overall tally comes to £78m.