(8 years, 8 months ago)
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The Economic Secretary to the Treasury (Harriett Baldwin)
I can today confirm that I have laid a Treasury Minute informing the House of a reduction in HM Treasury’s contingent liabilities to Bradford & Bingley.
The Treasury Minute concerns the guarantee arrangements announced on 29 September 2008 that put in place arrangements in relation to wholesale borrowings and deposits. At March 2015 the maximum contingent liability to HM Treasury on this guarantee arrangement was £2.4 billion.
I can confirm that, following the repurchase of two outstanding Bradford & Bingley covered bonds, the maximum exposure to HM Treasury under this guarantee arrangement has fallen to around £1.5 billion.
If the remaining liability is called, provision for any payment will be sought through the normal supply procedure.
I will update the House of any further changes to Bradford & Bingley associated guarantee arrangements as necessary.
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