Taxpayers get £1.9bn back from ‘bad bank’

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The state-run ‘bad bank’, which is running down the loans of bailed out lenders Bradford & Bingley and Northern Rock, today said that it repaid £1.9 billion to the UK government during the first six months of the year.

UK Asset Resolution (UKAR) said it has now returned £6.6bn to the government, having owed £48.7bn when it was created in October 2010.

The firm said it will continue to make regular repayments to the government amid signs of a recovery in the wider economy.

Chief executive Richard Banks said: “UKAR has continued to make good progress in the first half of this year, with payments of £1.9bn made to taxpayers.

“It is also pleasing to see the continued reduction in arrears due to the dedication and professionalism of colleagues proactively working with our customers to help them achieve the right outcomes.”

Banks said the low interest rate environment has also helped the total number of mortgage cases that are three or more months in arrears fall by 29 per cent to 21,332 cases.

He added: “The total value of arrears owed by customers has fallen by £24m to £161.8m during the six months to 30 June, a reduction of 13 per cent.”