British finance minister to address parliament on Northern Rock
British finance minister Alistair Darling is to make a statement to parliament Monday regarding the future of troubled mortgage lender Northern Rock.
By Agencies |
LONDON: British finance minister Alistair Darling is to make a statement to parliament Monday regarding the future of troubled mortgage lender Northern Rock.
The Treasury (finance ministry) is also due to make a statement to the London Stock Exchange on the re-financing package for Northern Rock at 7 am Monday.
The two statements come a day after Prime Minister Gordon Brown shot down suggestions he was negotiating the bank's future with Virgin boss Richard Branson, who was travelling with him on diplomatic visits to China and India.
Virgin Money is one of two private sector bidders vying for control of the bank, although doubts have been raised about whether either has enough capital to repay some 26 billion pounds ($51 billion) in Bank of England loans.
Ministers have also said nationalisation of the bank remains a viable option.
Northern Rock was forced to apply for emergency funding from the Bank of England in September, when it fell victim to the global credit crunch.
Brown confirmed Saturday that Goldman Sachs had submitted a government-commissioned report on options for the future financing of the mortgage lender, but did not reveal details.
The BBC reported late Friday that the British government backed Goldman Sachs' recommendation to convert Northern Rock's loans into bonds and sell them piecemeal to international investors when market conditions improve.
Critics have said the proposal, if confirmed, will do little to placate British taxpayers, as they would continue to prop up the ailing firm -- only this time potentially to boost private sector coffers.
The Treasury (finance ministry) is also due to make a statement to the London Stock Exchange on the re-financing package for Northern Rock at 7 am Monday.
The two statements come a day after Prime Minister Gordon Brown shot down suggestions he was negotiating the bank's future with Virgin boss Richard Branson, who was travelling with him on diplomatic visits to China and India.
Virgin Money is one of two private sector bidders vying for control of the bank, although doubts have been raised about whether either has enough capital to repay some 26 billion pounds ($51 billion) in Bank of England loans.
Ministers have also said nationalisation of the bank remains a viable option.
Northern Rock was forced to apply for emergency funding from the Bank of England in September, when it fell victim to the global credit crunch.
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Brown confirmed Saturday that Goldman Sachs had submitted a government-commissioned report on options for the future financing of the mortgage lender, but did not reveal details.
The BBC reported late Friday that the British government backed Goldman Sachs' recommendation to convert Northern Rock's loans into bonds and sell them piecemeal to international investors when market conditions improve.
Critics have said the proposal, if confirmed, will do little to placate British taxpayers, as they would continue to prop up the ailing firm -- only this time potentially to boost private sector coffers.
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