24
Feb
Government 'in new Lloyds TSB lending deal'
Lloyds TSB could provide more mortgage finance under a new deal
with the government that will see interest on a taxpayer loan
waived.
The bank has been in talks with chancellor of the exchequer
Alistair Darling over the proposed move, which would see £480
million of interest payments being set aside, the Financial Times
reports.
In return, the bank would increase its lending to both mortgage
customers and businesses.
Such a move may include providing more finance to buy-to-let
investors.
The report also suggested that Mr Darling could decide to convert
£4 billion of preference shares to stop the government's stake
in the lender rising above 50 per cent.
Last week, Liberal Democrat Treasury spokesman Vince Cable said
Lloyds TSB and the Royal Bank of Scotland had been "in effect"
nationalised by the government and therefore it should force them
to provide more lending.
