Rock FD says repayments will be shelved for 6 months

Northern Rock's finance chief has said that the nationalised bank's loan repayment to the government will have to be put off until 2011.

Ann Godbehere told the Treasury Select Committee that after stress-testing the plan against an earlier decline in the housing market, the loan repayment would be postponed for six months and the guarantees may have to be extended beyond 2011.

The Treasury is still looking for someone to tot up the value of the bank after the government loan is stripped out .

Godbehere added: 'The taxpayer will get repaid but it will come in more slowly.'

Further reading:

Northern Rock shareholders take fight to High Court