SHANGHAI, Jan 19: Prime Minister Gordon Brown on Saturday confirmed receipt of a key report on the future financing of British bank Northern Rock, amid claims its loans will be converted into bonds and sold.

US investment bank Goldman Sachs has been looking into whether two private sector companies have enough funds to bail out the stricken mortgage lender, which was hit by last September’s credit crunch on the global finance markets.

Without citing sources, the BBC in London said the British government has backed a plan to turn the billions of pounds in Bank of England loans into bonds for sale to international investors, as recommended by Goldman Sachs.

Speaking in China, where he is on a two-day visit to boost trade links, including in the banking and financial services sector, Brown did not deny the report when it was put to him.—AFP