§ Mr. Bernard JenkinTo ask the Secretary of State for the Environment, pursuant to his answer of 10 February,Official Report, column 84, what further progress has been made with the sale of the Housing Corporation's loan portfolio. [19568]
§ Mr. CurryContracts were exchanged with NatWest Markets on Wednesday 5 March, which establish the terms on which the portfolio will be sold.
Because the purchase price is subject to changes in the underlying portfolio and to movements in the gilt rate between now and when completion takes place at the end of March, I cannot yet provide a precise figure for the final receipt. However, at today's rate, a substantial premium over book value will be paid. Some £500 million will be received before the end of this financial year, as anticipated in spending plans, and I confidently expect that the further £500 million anticipated in next year's plans will be exceeded when the balance is received on 1 April.
The receipt will be subject to subsequent adjustment should any of the loan characteristics differ from those described in the contract, in any way that results in a financial loss for either party. This was anticipated in the minute I laid before Parliament on 10 February. No other warranty, apart from the undertaking about the ownership of the loans, has been given.