The Government has offered fresh support to Northern Rock by obligations with taxpayers' money.
The Treasury extended its guarantee on £24bn of savers' deposits. The guarantee now also covers a range of unsecured financial arrangements. The taxpayer has also lent Northern Rock £25bn through the Bank of England. The new guarantees cover uncollateralised and unsubordinated wholesale deposits, payment obligations under derivative trades, and payments under Northern Rock's Granite mortgage securitisation programme.
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