Milestone moment: Sale agreed for billions in Northern Rock loans

A £4.9 billion portfolio of loans bought by the taxpayer during the financial crisis has been sold in a “milestone” move. 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. 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).