HM Treasury today confirms that the guarantee arrangements for existing deposits in Northern Rock PLC would cover all accounts existing at midnight on Wednesday 19 September.
This guarantee covers future interest payments, movements of funds between existing accounts, and new deposits into existing accounts. The guarantee will also cover accounts re-opened in the future by those who closed them between Thursday 13 September and Wednesday 19 September, inclusive.
Since it would otherwise be unfair to other banks and building societies, the arrangements would not cover any new accounts set up after 19 September, other than re-opened accounts as set out above.
In the case of wholesale market funding for Northern Rock PLC, the Treasury confirmed that the arrangements would cover: