THE holding company that runs the state-owned part of Northern Rock repaid £0.8bn to taxpayers in the first half of the year.
UK Asset Resolution Limited (UKAR), which manages Northern Rock Asset Management (NRAM) and the collapsed Bradford & Bingley, now owes the Government £45.8bn.
The figures, for the six months to June 30, show that UKAR repaid £788m in Government loans and £391m to the Government in the form of interest, fees and corporation tax.
As part of this, NRAM repaid £88m in Government loans, reducing the amount owes £19.6bn, and paid £140m in interest, fees and corporation tax to the Government.
UKAR as a whole said its underlying pre-tax profit fell to £481.4m from £591.8m a year ago as its balance sheet reduced and it faced an increase in the interest rate on its Government loans.
The group, which this week announced the sale of £465m of NRAM mortgages to Virgin Money - the owner of the privatised part of Northern Rock - also revealed a 9% drop in the number of mortgages three months or more in arrears since the start of this year.
UK chief executive, Richard Banks, said: “We have made strong progress in the first half with further repayments to the Government.
“Much of our focus is on helping those of our customers who are in financial difficulty and it is pleasing to see a further significant reduction in arrears levels despite the continued economic uncertainty and pressure on consumers' finances.”
