LONDON A British government scheme to insure state-backed banks against credit losses will take on less than half the volume of toxic assets originally planned, under a deal unveiled on Tuesday.
Following is a summary of the key changes to the so-called Asset Protection Scheme.
* The APS will now hold 284 billion pounds ($464.4 billion) of toxic assets, down from 585 billion pounds under an outline deal unveiled in March.
* All the assets in the APS will come from just one bank, Royal Bank of Scotland, with Lloyds Banking Group opting out and turning to investors instead to boost its capital cushion against further credit losses by over 20 billion pounds.
* RBS remains in the APS, but reduces the assets it is committing to the program to 282 billion pounds from the originally planned 325 billion pounds.
* RBS to be liable for the first 60 billion pounds of losses, up from the originally agreed 42 billion pounds. The bank will also pay an annual fee to the government of 700 million pounds for the first three years, and 500 million pounds thereafter.
* Lloyds to pay a 2.5 billion pound fee to the government for the implicit protection it has had from the APS scheme since it was agreed in principle in March.
(Reporting by Myles Neligan; Editing by Greg Mahlich)