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Financial services update

My honourable friend the Economic Secretary to the Treasury (Harriett Baldwin) has today made the following Written Ministerial Statement.

I can today confirm that I have laid a Treasury Minute informing the House of the sale of NRAM plc to Cerberus, and the replacement of NRAM plc on the government’s balance sheet by a new company, NRAM (No. 1) Limited (“StayCo”), which will continue to wind down the remaining legacy assets of the former Northern Rock.

The Treasury Minute concerns the transfer to StayCo of assets and liabilities of NRAM plc that were not included in the sale to Cerberus. The government has also reissued, on a like-for-like basis, the guarantees for StayCo’s directors, replacing the previous arrangements for NRAM plc. StayCo is also taking on NRAM plc’s State aid commitments.

The government has received the final £520 million from Cerberus as part of the conclusion of this sale. The Treasury’s contingent liabilities have also reduced by £1.6 billion as a result of the withdrawal of the Treasury’s undertaking to NRAM plc.

I will update the House of any further changes to NRAM (No. 1) Limited as necessary.