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Huge loss predicted on bailout

Updated on 21 April 2009

By Faisal Islam

The British government could lose £200bn on the cash it has poured into our banking system.

That dramatic estimate came from the International Monetary Fund and will make uncomfortable reading for the chancellor as he prepares the budget statement and another factor could undermine the economy.

For the first time in half a century the UK is experiencing deflation, a general fall in price levels.

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