FORMER Bank of Scotland managing director Gavin Masterton has denied claims that his past relationship with the bank led to most of a major loan being written off.The former Dunfermline Athletic boss's firm, East End Park Ltd , was given a GBP12.2 million loan secured against the Fife side's stadium in 2008 and used for upgrades to East End Park.However, both the club and Mr Masterton's firm went into administration last year. Bank of Scotland has now reportedly written off most of the loan, having recovered just GBP600,000 .The loan was described as favourable by some politicians, given that repayments did not need to begin for 35 years.Scottish Labour finance spokesman Iain Gray earlier this week claimed there was a suspicion that the taxpayer-backed bank may have allowed "preferential treatment to one of their own former senior executives."But Mr Masterton strongly denied the suggestion, and said he had not benefitted in any way from the loan, which was to his firm.He said last night: "The arrangement with BoS went through all the internal approval processes at the bank and very clear commercial terms were agree that would ensure a full return to the bank at the end of the loan period."Ultimately, it was the football club, not myself, that was the beneficiary of this arrangement as the loan took care of the debts that the club had amassed for many years prior to me taking on the stewardship role that came with being the major shareholder." Mr Masterton added: "It is easy for people in their ivory towers to make criticisms and I have never assumed I should be immune from any criticism. However, before anyone makes any judgment about what may or may not have taken place, they must ensure that they are in possession of all the relevant facts; no-one has yet done that."
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