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Northern Rock

Volume 696: debated on Wednesday 5 December 2007

asked Her Majesty's Government:

How the £24 billion loaned to Northern Rock is shown in the accounts of the Bank of England. [HL453]

Drawings by Northern Rock appear as an asset on the Bank of England's weekly Bank Return under “other assets”. However, this line also includes transactions with the UK Government, foreign central banks and international financial institutions, and as such any movements in “other assets” are not due solely to Northern Rock. The Bank of England does not disclose any breakdown of the components of other assets.

asked Her Majesty's Government:

How the £24 billion loaned to Northern Rock is shown in the National Accounts. [HL454]

The loan from the Bank of England to Northern Rock is shown as an asset of the Bank in the National Accounts.

asked Her Majesty's Government:

Whether the financial assistance to Northern Rock will cause any cutbacks in their spending for the next few years; if so, how and when; and, if not, from what source the funding came. [HL646]

I refer the noble Lord to the Answer I gave to Earl Atlee on 3 December (Official Report, col. WA 169).