Written question asked by Stewart Hosie (Scottish National Party) on Wednesday, 10 June 2009, in the House of Commons. It was due for an answer on Friday, 12 June 2009. It was answered by Baroness Ussher (Labour) on Wednesday, 17 June 2009 on behalf of the Treasury.

Banks: Finance

Question: To ask the Chancellor of the Exchequer what the expected exposure range for bad debt is in relation to the Asset Protection Scheme.

Answer: As announced on 26 February, the Royal Bank of Scotland Group (RBS) agreed in principle to protect £325 billion of assets in the Asset Protection Scheme; and on 7 March Lloyds Banking Group (Lloyds) agreed in principle to protect £260 billion of assets in the scheme. After the deduction of the first loss (£42.2 billion and £35.2 billion respectively) that falls to the participating banks, the Treasury will guarantee 90 per cent. of the remaining value (at 31 December 2008) of the covered assets.The Treasury and its advisers are continuing to work with participating banks to conduct due diligence on the assets intended for inclusion in the scheme.Further detailed information will be provided after the final contracts are signed.

Secondary information

Type: Written question
Reference: 494 c322-3W; 279978
Session: 2008-09
Related items: Written Questions: Government Responses
Monday, 22 June 2009
Written questions
House of Commons
Subjects: Asset protection scheme
Link: View this Written question on www.publications.parliament.uk