Ishmael
JF-Expert Member
- Oct 18, 2011
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Source: Bloomberg
The U.K. Treasury will assume full responsibility for Britains 1.2 trillion-pound ($2 trillion) debt if Scottish voters back independence in a referendum in September.
The British government will still expect Scotland to pay its share of the debt and reimburse the rest of the U.K. directly, the Treasury in London said in a statement today.
The 10-year U.K. government bond yield was 2.86 percent in London today, 102 basis points more than equivalent German bunds. Todays Treasury announcement is designed to stop investors demanding a higher premium to hold U.K. government debt as the independence referendum approaches.
We need to make sure taxpayers are not disadvantaged by the fact of this referendum, that there is no sort of separation surcharge on U.K. government debt, Chief Secretary to the Treasury Danny Alexander told Sky News television.
Read more: U.K. Will Honor Public Debt If Scotland Becomes Independent - Bloomberg
This had been a big, dangling question as Scotland moves towards a possible independence vote this year.
The U.K. Treasury will assume full responsibility for Britains 1.2 trillion-pound ($2 trillion) debt if Scottish voters back independence in a referendum in September.
The British government will still expect Scotland to pay its share of the debt and reimburse the rest of the U.K. directly, the Treasury in London said in a statement today.
The 10-year U.K. government bond yield was 2.86 percent in London today, 102 basis points more than equivalent German bunds. Todays Treasury announcement is designed to stop investors demanding a higher premium to hold U.K. government debt as the independence referendum approaches.
We need to make sure taxpayers are not disadvantaged by the fact of this referendum, that there is no sort of separation surcharge on U.K. government debt, Chief Secretary to the Treasury Danny Alexander told Sky News television.
Read more: U.K. Will Honor Public Debt If Scotland Becomes Independent - Bloomberg
This had been a big, dangling question as Scotland moves towards a possible independence vote this year.
