The Bank of England loaned Northern Rock 7.100 billion euros on Friday
Spanish businessman José María Ruiz-Mateos has abandoned his plan to buy the English bank Northern Rock, the fifth largest mortgage lender in the United Kingdom, given the "poor conditions" in which the financial institution currently finds itself.
In a letter sent by the Jerez businessman to Merrill Lynch International, Ruiz-Mateos explains that "the worsening of the bank's conditions forces him to discontinue attempts to resolve the entity's conflict."
Ruiz-Mateos points out in his letter that the Bank of England's "delay" in intervening in Northern Rock is the main reason for abandoning his plans to buy the bank, and asserts that "if the appropriate measures had been taken," the operation would have unfolded differently.
The Bank of England lent Northern Rock around £5.000 billion (€7.100 billion) on Friday, after granting the British bank an initial emergency loan two weeks ago.
Thus, Northern Rock's total debt to the issuing bank now amounts to almost 8.000 billion pounds (about 11.500 billion euros), an amount equivalent to a third of the deposits the entity had at the end of last June.
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