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Northern Rock

Volume 494: debated on Wednesday 17 June 2009

To ask the Chancellor of the Exchequer what the most recent timetable is for repayment of loans advanced to Northern Rock. (279980)

The Government announced on 23 February of this year that in order to enable Northern Rock to undertake increased levels of new lending, the bank will be restructured so that the back book of mortgages is managed separately to its other business.

The Government also announced at the time that they will increase the loan to Northern Rock and extend the repayment schedule. The Government are continuing to work with Northern Rock to finalise the details of the restructuring, based on achieving maximum value for the taxpayer and with a view to creating a viable entity for sale at a later date. Further details will be published once a final plan has been agreed.