To ask the Chancellor of the Exchequer whether Northern Rock meets banking covenants on (a) profitability and (b) cash flow on its borrowing from his Department and the Bank of England. (168528)

On 14 September 2007 the Chancellor of the Exchequer authorised the Bank of England to provide a liquidity support facility to Northern Rock. A further facility with the Bank of England was announced on 11 October 2007. Extensive representations, warranties and undertakings govern the terms and conditions of the loans. The terms and conditions of the facilities are confidential.