Monday, 7 April 2008

It is payback time

(click on the chart for a sharper image)

According to the latest Bank of England balance sheet, Northern Rock has begun to pay down its loans. Since January 23rd, Northern Rock's liability to the bank has shrunk by about £7.6 billion. However, there is still a long way to go. The Wreck still owes something like £25 billion.


Anonymous said...

Alice, where the graph shoots up this is clearly in conjunction with the 'assets' the BofE aquired from NR. Any idea what the other £12bn odd relates too before the nationalisation happened?


Alice Cook said...


The BoE describes this part of the balance sheet as "Other assets". Presumably, it is a hotch-potch of accumulated assets currently owned by the BoE. I am just guessing here, but it would include property, loans (yes, the BoE once was a genuine bank) and other things.

However, Other assets was always very stable, suggesting it was a sleepy part of the balance sheet, at least until NRK came along....



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