A consortium led by Sir Richard Branson's Virgin Group has been chosen by Northern Rock as its preferred buyer. If the banks shareholders agree to the offer, then Virgin's consortium will make an immediate repayment of £11bn of the £25bn the bank owes the Bank of England. The question is, when will the other £14bn be paid back?
Well it turns out that Virgin will repay the remaining £14bn of Treasury loans over the next three years. This proves correct a report by the Financial Times last week that it had seen documents that said Northern Rock may not be able to repay its Bank of England loan until 2010. This also comes after Darling promised only last month that the loan would be repaid within a matter of weeks and months.
More spin from Labour - surely not?