United Kingdom: HM Treasury

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 3-29-2010 2008 Credit Guarantee Scheme United Kingdom: HM Treasury Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation United Kingdom: HM Treasury, "2008 Credit Guarantee Scheme" (2010). YPFS Documents (Series 1). 8028. https://elischolar.library.yale.edu/ypfs-documents/8028 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu.   2008 Credit Guarantee Scheme  The Treasury is publishing this report following the closure of the drawdown window to provide additional background information about the initial drawdown phase . 1 The Credit Guarantee Scheme was put in place as part of the financial support to the banking sector announced on 8 October 2008. It provides a Government guarantee for new short and medium term debt issuance to institutions eligible under the scheme (Eligible Institutions). The scheme became operational on 13 October 2008 and closed to new issuance on 28 February 2010. HM Treasury acts as guarantor for debt covered by the scheme, while the Debt Management Office handles the operational aspects.  The scheme has two main stages. During the initial drawdown window, Eligible Institutions were able to refinance maturing liabilities under the scheme. Following closure of the drawdown window on 28 February 2010, Eligible Institutions are able to refinance debt already guaranteed under the scheme, but they cannot issue new debt.   Issuance under the scheme  The scheme was open for refinancing of maturing liabilities through debt guaranteed under the scheme from 13 October 2008 until the closure of the drawdown window on 28 February 2010.    The majority of issuance was carried out in the first three months of the scheme. By the end of 2008 around £100 billion had been issued by Eligible Institutions.  By the summer of 2009 outstanding issuance had risen further to over £125 billion. At the time of the Pre-Budget Report in 2009 issuance was reported as £134 billion.   1 More general information relating to rules and operation of the scheme is published on the UK Debt Management Office website at UK Debt Management Office.   Since then, overall outstanding issuance has decreased as debt issued in the early stages of the scheme matured without being refinanced. As of 24 March 2010, issuance stood at £125 billion.  Currencies  Issuance in the following currencies is eligible for a guarantee under the scheme: Sterling, US dollars, Euros, Japanese yen, Swiss francs, Australian dollars and Canadian dollars.  A breakdown of currencies as at 24 March 2010 is set out below in sterling equivalent millions: Sterling Euros US Dollars Australian Dollars (£mn) Swiss Francs (£mn) Japanese Yen (£mn) Canadian Dollars (£mn) (£mn) (£mn) (£mn) 48,763 19,747 45,522 1,952 207 8,742 -   Maturities  Under the scheme, Eligible Institutions were able to issue instruments between 1 month and 3 years in maturity.  The table below provides a high-level breakdown of the maturity profile of outstanding issuance.  Liabilities maturing in 12 months or less (£million) Liabilities maturing between 1-3 years (£million)21,230 123,703               2 Figure relates to the original date of issuance     Eligible Institutions A.1   Eligible Institutions making use of the scheme  The following Eligible Institutions have issued debt under the scheme since its inception in October 2008.   Bank of Scotland plc Barclays Bank plc Clydesdale Bank plc Coventry Building Society Investec Bank plc Lloyds TSB Bank plc Nationwide Building Society Rothschilds Continuation Finance plc  Skipton Building Society Standard Life Bank plc Tesco Personal Finance plc The Royal Bank of Scotland plc West Bromwich Building Society Yorkshire Building Society                 A.2  Eligible Institutions that have not issued under the scheme  Since 13 October 2008, each of the following Eligible Institutions has received an Institution Certificate but have not issued debt under the scheme.  Bath Investment & Building Society Beverley Building Society Buckinghamshire Building Society Cambridge Building Society Chelsea Building Society Chesham Building Society Chorley Building Society Close Brothers Finance plc Co-operative Bank plc Cumberland Building Society Darlington Building Society Dudley Building Society Earl Shilton Building Society  Ecology Building Society Furness Building Society  Hanley Economic Building Society Hinckley and Rugby Building Society HSBC Bank plc Ipswich Building Society Kent Reliance Building Society Leeds Building Society Leek United Building Society The Loughborough Building Society Manchester Building Society    The Mansfield Building Society Market Harborough Building Society  Marsden Building Society Melton Mowbray Building Society   Monmouthshire Building Society   National Counties Building Society Newbury Building Society Newcastle Building Society Norwich and Peterborough Building Society Nottingham Building Society Penrith Building Society Principality Building Society Progressive Building Society Saffron Building Society Santander UK plc (formerly Abbey National plc) Scottish Building Society Shepshed Building Society Standard Chartered Bank Stroud and Swindon Building Society Sumitomo Mitsui Banking Corporation Europe Limited Teachers Building Society Tipton & Coseley Building Society Vernon Building Society   

2008 Credit Guarantee Scheme

https://elischolar.library.yale.edu/context/ypfs-documents/article/9076/viewcontent/pr20100419.pdf

2008 Credit Guarantee Scheme

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