Barclays borrowed $730m from Bank of England, say sources

August 2007

Barclays Bank has become the first firm to use the Bank of England's (BoE) credit facility since the current credit crunch began, it has been reported.

Barclays borrowed $730 million from the state bank's standing lending facility on Monday, according to unnamed sources cited by the British newspaper the Daily Mail.

Barclays is believed to have used the loan to cover its accounts at the end of the day, countering speculation that the loan was related to liquidity concerns.
Neither BoE or Barclays has commented on the reports.

News of the rumoured loan to Barclays comes at a time when president Bob Diamond has confirmed that the bank's interest in acquring ABN Amro will not be affected by current market conditions.

Speaking in a televised interview with CNBC television, he said: "It certainly hasn't impacted our interest."

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development