LONDON, (MILLAT ONLINE/APP/AFP) – The British government
announced Friday the sale of #11.8 billion ($14.7 billion,
13.7 billion euros) in loans that it acquired from bailed-out
bank Bradford & Bingley during the global financial crisis.
The closed loans will be sold to insurance group
Prudential and to funds managed by private equity giant
Blackstone, the Treasury said in a statement.
“The sale of these Bradford & Bingley assets for
#11.8 billion marks another major milestone in our plan
to get taxpayers’ money back following the financial
crisis,” said finance minister Philip Hammond.
Britain injected a total of #133 billion and provided
over a trillion pounds in guarantees to prop up its banks in
the three years to 2010, according to National Audit Office
data.
The commercial banking sector also benefitted from the
Bank of England’s record-low interest rates and vast lending
stimulus, in place since 2009.
The government is now trying to wind down its holdings
in various financial institutions, including Royal Bank of
Scotland and Lloyds Banking Group, that were bailed out
during the financial crisis.
“We are determined to return the financial assets we
own to the private sector and today’s sale is further proof
of the confidence investors have in the UK economy,” said
Hammond.
Bradford & Bingley was nationalised in 2008, with its
deposits and branch network sold to Spain’s Santander Group.
The mortgage book and investment portfolios remained in
public hands.