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Northern Rock

Volume 470: debated on Wednesday 23 January 2008

To ask the Chancellor of the Exchequer what provisions he has made for the accounting of (a) the loans advanced to Northern Rock and (b) the guarantees made for deposits held within Northern Rock within the national accounts; and if he will make a statement. (180032)

The loan from the Bank of England to Northern Rock will be shown as an asset of the bank and a liability of the company in the national accounts.

I refer the hon. Gentleman to the letters the Chancellor sent to the chairs of the Public Accounts Committee and the Treasury Select Committee on 11 October 2007, which the provisions of the Government’s guarantee arrangements explain and which are available in the House Library.