Good news at RBS

Royal Bank of Scotland has cancelled one of the final pieces of the multi-billion pound bailout package put in place five years ago as part of its $74.9bn taxpayer-funded rescue.

The Daily Telegraph reports that the bank said it had agreed with the Treasury the withdrawal of a capital facility that could have seen the state pump up to $13bn into RBS had it faced a serious deterioration in its finances.

RBS had been paying $521.5m a year to keep the line in place, but said it had reached a deal to cancel the so-called Contingent Capital Facility after the Treasury agreed its balance was sufficiently robust as to no longer need the emergency support.

The facility was due to expire at the end of next year and had so far cost the bank $1.97bn in fee payments. Because of the scheme’s early cancellation, RBS said it would be adding the remaining $521.5m value of the fees it would have had to pay out to its equity.

To access the complete Daily Telegraph article hit the link below:

RBS cancels £8bn taxpayer guarantee

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image: © Elliot Brown

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