18 December 2007

HMT extends wholesale guarantee arrangements to Northern Rock

The UK Treasury confirmed that the guarantee arrangements for Northern Rock are being extended to the following unsubordinated wholesale obligations:

- all uncollateralised and unsubordinated wholesale deposits and other borrowings which are outside the guarantee arrangements previously announced by HM Treasury;

- all payment obligations of Northern Rock plc under any uncollateralised derivative transactions;

- in respect of all collateralised derivatives, and all wholesale borrowings which are collateralised, the payment obligations of Northern Rock plc to the extent that those obligations exceed the available proceeds of the realised collateral for the relevant derivative or borrowing; and

- all obligations of Northern Rock plc to make payments on the repurchase of mortgages under the documentation for the "Granite" securitisation programme.

Press release

© Graham Bishop