Gordon Brown's scheme to help struggling borrowers avoid repossession by reducing their mortgage payments for two years has been shunned by major lenders, according to The Guardian .
It is believed some of the lenders became concerned after receiving calls from customers in December, when the scheme was first announced, demanding to be given a two-year payment holiday.
There are also fears the scheme will weaken lenders' capital cushions because of the way participating customers will be treated for accounting purposes.
THE TIMES REPORTS the IMF has been forced to withdraw a claim Britain faces a £200bn bill for the bank bail-out.
A statement from the Treasury was issued saying the figure was "wrong" and had been issued in error. It was retracted by the IMF and corrected to the original estimate of £130bn.
The dispute comes as Alistair Darling is set to issue his own estimate of the cost of the bail-out when he delivers the Budget today.
President Obama's plan to offer fund managers and private investors the equivalent of cheap US government loans to buy up $1trn (£681bn) of toxic debts from big American banks has yet to swing into action.
THE DAILY TELEGRAPH reports growing fears in Westminster that President Obama's proposed "public-private" partnership will fail to solve the problem as there is not sufficient appetite among the investment community to buy up the dubious loans.
The Treasury is now concerned that unless a new American package is announced imminently, British attempts to tackle the recession may be hindered.
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