House of Commons · Written Ministerial Statement
Notification of a Contingent Liability
18 March 2020 · Treasury
Proposed by Rishi Sunak Con Richmond and Northallerton
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Rishi Sunak is announcing the Covid-19 Corporate Financing Facility to help companies affected by the disruption caused by Covid-19.
- The CCFF will be managed by the Bank of England on behalf of HM Treasury with a full indemnity from HM Treasury.
- The scheme will become operational in the week commencing 23 March 2020 and is unlimited in size, focusing on purchasing newly issued Commercial Paper from eligible companies.
Issue summary
Rishi Sunak is announcing a new credit easing scheme called the Covid-19 Corporate Financing Facility (CCFF) to help companies affected by the disruption caused by Covid-19.
Action requested
The CCFF will become operational in the week commencing 23 March 2020 and will be managed by the Bank of England on behalf of HM Treasury with a full indemnity provided by HM Treasury. The scheme is unlimited in size and will focus on purchasing newly issued Commercial Paper from eligible companies.
Key facts
- The CCFF will become operational in the week commencing 23 March 2020.
- It will be run by the Bank of England (The Bank) on behalf of HM Treasury.
- HM Treasury are extending a full indemnity for the CCFF, creating a new contingent liability equal to potential losses of the Facility.
- The scheme is targeted at purchasing newly issued Commercial Paper from eligible companies rated investment grade and making a material contribution to the UK economy.