A £4.9 billion portfolio of loans bought on behalf of the taxpayer during the financial crisis has been sold in a "milestone" move, the Chancellor has announced.
The portfolio of mortgages and unsecured loans from NRAM - formerly part of failed bank Northern Rock - were sold to US investment banking giant Citi, with finance provided by bond manager Pimco.
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The Treasury said the sale marks a "major milestone" in the recovery of taxpayers' cash, with the proceeds used to fully repay the loans provided to NRAM and Bradford & Bingley (B&B) at the height of the financial crisis.
After the deal, UK Asset Resolution (UKAR) - the so-called bad bank that manages the assets of Northern Rock and B&B - owns around £8 billion worth of assets, down from about £14 billion in September 2018 and from £116 billion in 2010.
