LONDON — The Bank of England has lent about 3 billion pounds (US$6 billion; €4.3 billion) to troubled British mortgage lender Northern Rock, a newspaper reported Saturday.
Analysis of the Bank of England’s weekly balance sheet showed that Northern Rock PLC had been forced to borrow about 3 billion pounds (US$6 billion; €4.3 billion) in publicly funded loans, the Financial Times said.
The Bank of England announced eight days ago that it approved emergency funding to help the bank overcome a liquidity crisis, and Northern Rock Chief Executive Adam Applegarth has said the company expected to borrow substantial amounts of money, although he did not specify how much.
A Bank of England spokeswoman confirmed that its weekly balance sheet had expanded, but said the 3 billion pounds (US$6 billion; €4.3 billion) figure was speculative.
“What happens is that various commentators have looked at our balance sheets and seen that its expanded,” the spokeswoman said, speaking on condition of anonymity in line with bank policy. “They’ve gone and made a supposition out of an expansion in the balance sheet.”
A Northern Rock spokeswoman refused to discuss the report.
“We don’t comment on corporate activity of that nature,” company spokeswoman Jemma Rundle said.