BGN Entrepreneur

Northern Rock reported a loss of £ 724m for the first half of 2009, when the government is working to hand the state-owned bank into private hands.
The bank has suffered an increase in the number of bad debts on its books and saw the net savings they fall. Taxpayers now have the majority of the money for the deposit, the bank will be repaid about two-thirds of the £ 27bn it won.
However, the proportion of redemptions has slowed, as the government encourages Northern Rock to get back into the market for mortgage loans. It still owes the taxpayer around £ 10.9 and is awaiting European approval to borrow even more.
With the return to lending is part of the strategy to return Northern Rock to the private sector. The Bank is pressing ahead with a proposed division of the business—the spin-off bad loans, into a separate entity responsible for paying back loans from the taxpayer. Meanwhile, the savings and loan business, along with the 70 branches, must be sold and go into private hands without the legacy of toxic debt.

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