Co–op could sell £2bn loan package

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THE Co-operative Group is mulling the sale of a 
£2 billion loan portfolio after a report by a credit agency raised fears its banking arm was in need of a government bail out.

Last week Moody’s downgraded the division to “junk” status due to an “unexpectedly significant” deterioration of its property loans. It is thought the sale of its impaired commercial property book could help stem the bank’s estimated £800 million to £1.8bn capital shortfall.