06-06-2008
Northern Rock restructuring causes concern
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Members of the European Commission (EC) have stated serious reservations regarding the government's restructuring plan for the beleaguered bank Northern Rock, according to reports.
In the EC's official plan set out in the European Union's (EU) official journal, stating that aid could have been more limited and more could be done to compensate rivals.
Lawyer's for the organisation said if the loan itself was found to be illegal then the EU could force the repayment.
According to the Financial Times, the Chancellor Alistair Darling noted that the assessment of the EU's conclusion on the nationalisation of the company was simply a standard procedure when launching an official enquiry.
Northern Rock was loaned a total of £24 billion at the start of the year to stop the company from going under.
It is currently on-track to repay the loan through the reduction of its current loan book by approximately 25 per cent.