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Written question asked by Ed Balls (Labour) on Tuesday, 18 October 2011, in the House of Commons. It was due for an answer on Friday, 21 October 2011. It was answered by David Gauke (Conservative) on Friday, 21 October 2011 on behalf of the Treasury.

Banking: Asset Purchase

Question
To ask the Chancellor of the Exchequer what discussions he has had with the Bank of England on the use of the Asset Purchase Facility to purchase commercial paper and corporate bonds.
Answer

In his letter to the Governor of the Bank of England on 6 October 2011, the Chancellor of the Exchequer, my right hon. Friend the Member for Tatton (Mr Osborne), confirmed that the Asset Purchase Facility (APF) ““continues to include facilities for eligible private sector assets financed by the issuance of central bank reserves, Treasury Bills and the Debt Management Office's cash management operations that are authorised up to a maximum of £50 billion””. Private sector assets which are eligible for purchase by the APF were set out by the Chancellor's predecessor in his letter to the Governor of 3 March 2009. Eligible private sector assets include paper issued under the Credit Guarantee Scheme, corporate bonds, commercial paper, syndicated loans and asset backed securities.

Secondary information

Type
Written question
Reference
76173; 533 c1199W
Session
2010-12
Subjects
Banks Finance
Link
View this Written question on www.publications.parliament.uk