Parties interesting in acquiring the stricken Northern Rock Bank should not assume they will have access to Bank of England loan facilities it was announced today.
The Treasury release a statement today saying it was willing to discuss its role with bidders, but none should presume taxpayer funding will be available to them.
The Treasury published a statement of principles on behalf of the Tripartite Authorities, setting out how it expected potential bidders to go forward.
The statement says: “The principles clearly state that interested parties should not assume at this stage that the current Bank of England loan facilities will be available beyond either any sale or the expiry of the facilities in February.”
However, the Treasury says it is open to discuss proposals with potential bidders and says the Tripartite Authorities may consider going beyond their usual statutory and regulatory functions given sufficient merit.
The Treasury also stated that its deposit guarantee arrangements with Northern Rock continue to be in place.
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