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| Northern Rock makes hefty losses | Northern Rock makes hefty losses |
| (20 minutes later) | |
| Northern Rock has reported a loss of £724.2m for the first six months of 2009, compared with a loss of £585.4m in the first half of last year. | Northern Rock has reported a loss of £724.2m for the first six months of 2009, compared with a loss of £585.4m in the first half of last year. |
| The bank said that 3.92% of its mortgage loans were more than three months in arrears, well above the national average of 2.39%. | The bank said that 3.92% of its mortgage loans were more than three months in arrears, well above the national average of 2.39%. |
| It currently owes the government £10.9bn, but is waiting for European regulatory clearance for more funding. | It currently owes the government £10.9bn, but is waiting for European regulatory clearance for more funding. |
| Northern Rock was nationalised in February 2008. | Northern Rock was nationalised in February 2008. |
| It had to be bailed out by taxpayers in 2007 when its model of borrowing short-term funds from wholesale markets to lend to mortgage borrowers was hit by the credit crunch. | |
| It reported losses from loans and advances of £602.2m for the first six months of the year, compared with £191.6m for the same period the year before. | |
| Northern Rock is in the process of splitting itself into two companies, one of which will hold savers' money and be responsible for new lending, while the other will hold many of the existing loans and be responsible for paying back loans to the government. | |
| Once the restructuring has been completed, the Treasury will provide additional funding if the European Commission agrees to allow the plan. |