On the 3rd of June 2008, the European Commission released notification for State aid C 14/08 (ex NN 1/08) — Restructuring aid to Northern Rock in the united kingdom.

On 17 March 2008, the UK authorities notified a restructuring plan to the Commission, of which the key elements are:

1. A reduction of the balance sheet from around GBP 107 billion in 2007 to about half that size at the end of 2011.
2. Stabilisation of the balance sheet by seeking to grow the retail deposit base as a proportion of total funding, but with balances staying below pre-crisis levels.
3. Business in Denmark to be closed and put into run-off in 2008 and maintenance of small capped operations in Ireland and Guernsey.
4. Restoration of market confidence in the Northern Rock brand.
5. New management team.
6. Preparing the company to return to the private sector.

The plan would be supported by restructuring aid, which would mainly consist in the prolongation of the rescue aid measures, including the guarantee arrangements implemented on 18 December 2007. The intention would be that the iquidity facilities would be fully repaid by 2010 and the guarantee arrangements would be progressively lifted by the end of 2011 in the base case (in the downside case the guarantees may remain until 2013).

Interested parties may submit their comments on the measure in respect to the Commission's procedure no later than the 3rd July 2008 to:
European Commission
Directorate-General for Competition
State Aid Registry
B-1049 Brussels
Fax (32-2) 296 12 42

Full details of the aid scheme were published in the Offical journal of the European union (OJ) on 3rd June 2008.