Private sector solution still preferred for Northern Rock

Northern Rock has noted the Treasury’s proposal on a new financing structure to replace its Bank of England emergency loans, and welcomed the confirmation that “the preferred solution is to reach agreement on a private sector solution for the Company which meets the Tripartite’s previously stated objectives to protect taxpayers, consumers and to promote financial stability.”

Northern Rock states that its board will be “working closely with the Tripartite Authorities and interested parties (i) to enable interested parties to develop their proposals further, and (ii) to develop the standalone options for the Company, in each case in light of the financing structure outlined in today’s announcement by the Tripartite Authorities.”