Northern Rock exacerbates credit crunch - New Star

Ward says Bank of England figures suggest Northern Rock is ahead of schedule when it comes to repaying its taxpayer loan, but may cause problems for the economy as a whole. Northern Rock’s current restructuring plan estimates around 25% of its Government loans will be repaid by the end of 2008, equating to around £6.9bn. However, Ward says the Bank of England’s weekly return suggests Northern Rock has repaid almost all of the £6.9bn due this year by early June, and is likely to pay more in the remaining six months of the year. Ward believes Northern Rock’s enthusiastic attempts to repay ...