{"id":189,"date":"2007-11-15T12:24:55","date_gmt":"2007-11-15T12:24:55","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/uncategorized\/189\/"},"modified":"2007-11-15T12:24:55","modified_gmt":"2007-11-15T12:24:55","slug":"189","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2007\/11\/15\/189\/","title":{"rendered":"Rock expects \u00c2\u00a330bn loan this year"},"content":{"rendered":"\n\n\n
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Northern Rock and the Bank of England expect that by the end of the year the Rock will have borrowed \u00c2\u00a330bn from the central bank, the BBC has learned. <\/strong>It follows Thursday’s news that Northern Rock has already borrowed almost \u00c2\u00a323bn in emergency funding.<\/p>\n

That is roughly \u00c2\u00a3730 for every UK taxpayer and marks a rise of \u00c2\u00a32.2bn from the week ended 31 October.<\/p>\n

Northern Rock has been in trouble since the global credit crunch hurt its business and led to a run on the bank. <\/p>\n

To win back investor confidence, the government has guaranteed all Northern Rock deposits and loans.<\/p>\n

Bigger problem<\/strong><\/p>\n

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The BBC’s business editor Robert Peston says this means that the UK taxpayer’s exposure to Northern Rock could be much more than currently thought.<\/p>\n

“The extent of public sector support goes beyond these direct loans,” he said.<\/p>\n

“The Treasury has also indemnified a further \u00c2\u00a320bn odd of retail deposits,” he explained.<\/p>\n

“So we are talking about total public-sector exposure to the Rock of \u00c2\u00a340bn – equivalent to around 3% of our entire economy.<\/p>\n

“And that exposure could become much bigger, as other loans to the Rock fall due for repayment. ”<\/p>\n

Later on Thursday, Mr Peston learned that Northern Rock and the Bank of England were projecting that the firm would have borrowed “a staggering \u00c2\u00a330bn from the Bank of England” by year end, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00c2\u00a0\u00c2\u00a0 \u00c2\u00a0\u00c2\u00a0 Northern Rock and the Bank of England expect that by the end of the year the Rock will<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[9,48],"tags":[],"class_list":["post-189","post","type-post","status-publish","format-standard","hentry","category-companies","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=189"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/189\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}