PRINCE Andrew will use a family LOAN to fund his £12million financial settlement after Charles persuaded his disgraced brother to pay off his sex abuse accuser.
The Prince of Wales ordered the disgraced Duke of York to “shut it down” and pay up fearing his upcoming video witness statement with Virginia Roberts Giuffre‘s lawyers would be a “car crash”.
Royal sources say the heir to the throne met with the Queen last Tuesday at Windsor Castle and then wrote to his younger sibling urging him to “see sense”.
They feared Andy would be “skewered” by Virginia’s lawyer David Boies as he was by Emily Maitlis in his awful Newsnight interview in November 2019 which caused him to step down from public duty.
The cash-strapped Duke of York, 61, is still waiting for the proceeds of his £17million Swiss chalet – with the sale expected to be completed “within weeks”, according to sources close to the prince.
It means Charles, 73, and the Queen, 95, will instead dip into their personal funds to make sure Andrew can make the settlement and charitable donation before the deadline on March 17.
Andrew will be asked to pay back his “bridging loan” when he sorts out his tangled finances.
The remarkable turnaround comes just three weeks after Andrew demanded a sex abuse jury trial in New York claiming the case was “a marathon not a sprint”.
A royal source said: “The date of the deposition was the final straw of all final straws. Charles and the Queen could not countenance him giving a deposition.
“They shut it down as soon as the date was settled. It is a case of soft love as well – they are saving Andrew from himself.
“Andrew famously thought his Newsnight interview went well. They weren’t letting him be skewered by a lawyer. They also couldn’t wait to see how much money will be left from the sale of the chalet.
“Charles wrote to Andrew asking for him to “see sense”. Charles and the Queen prepared a bridging loan so that Andrew’s lawyers could confidently make the offer.
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“This means it goes away before the deposition date on March 10 and crucially before the service of Thanksgiving for the Duke of Edinburgh, which Andrew will attend as a family member.”
Charles had counselled Prince William over Christmas before the Queen agreed she must strip Andy’s patronages and military affiliations.
But the heir to the throne was shaken when the New York court on February 4th set a date for his deposition. Virginia’s lawyer David Boies to fly to the UK to quiz Andrew on March 10.
The royals feared Andrew’s witness deposition with Boies – who is known for gruelling seven-hour depositions – could become as costly as his Newsnight interview.
The thought of the deposition being made public and Andy taking the stand encouraged Charles to act swiftly, sources say.
A deal believed to be around £12million was hammered out by lawyers in 72 hours at the weekend after the Queen and Charles had offered a loan as security.
Generous terms are expected to mean Andy must pay his family back when he has the money.
Royal insiders have speculated that the sum loaned to the Duke could be taken from any money left to him in the Queen’s will
It is understood that the Queen had committed to paying his legal costs after Virginia submitted her civil case writ last August but was nervous about being seen to be paying off a sex trafficking victim.
It is understood Andrew has found a buyer and a price for his Swiss chalet. The estimated £17million sale is expected to go through “within weeks”.
He must first pay back a £7million loan borrowed from French socialite Isabelle De Rouvre to buy Chalet Helora in Verbier in 2014 and also settle the mortgage.
Money leftover will fall short of covering his legal fees, financial settlement and “sizable” charitable donation.
Andrew is believed to receive an allowance from the Queen estimated to be more than a quarter of a million pounds a year.
He also receives a £20,000-a-year Navy pension and it is believed to have money tied up in investments.
Labour Party leader Sir Keir Starmer last night said the settlement between the Duke of York and Virginia Giuffre had ended “a sorry chapter” but it was important not to lose sight of sexual abuse victims.
He said: “I’m not going to comment on the details of the case that’s now been settled. In any of these issues, whoever is involved, my starting point is always the same – which is to think about the victims of sexual abuse.
“Across the world there are many, many victims and we should always start from that perspective. Whatever the rights and wrongs of this settlement – and it does seem to end a sorry chapter – I think it’s very important we don’t lose sight, don’t lose focus, on the victims of sexual abuse.”
It is not known where the funds come from but Charles and the Queen have personal wealth as well as access to funds from the Duchy of Cornwall and Duchy of Lancaster.
Palace sources last night confirmed Prince Andrew will remain one of four Counsellors of State who can fill in while the Queen is ill or unable to perform her constitutional duties.
A spokesman for Andrew did not want to comment.
A spokesman for Buckingham Palace said: “We have never commented on financial aspects of The Duke’s legal affairs and won’t be now.”
