Commons Sense

House of Commons · Written Ministerial Statement

Notification of Contingent Liability

22 June 2020 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The Treasury authorised an expansion of the Asset Purchase Facility by 100 billion.
  • The new total capacity of the APF will be 745 billion.
  • The Government will continue to indemnify the Bank and the APF against potential losses under specific conditions.

Issue summary

The Treasury authorises an expansion of the Asset Purchase Facility (APF) by £100 billion to support the economy through further gilt purchases.

Action requested

I have authorised an increase in the APF's size from £645 billion to £745 billion, bringing its total capacity up to this new level. The Government will continue to indemnify the Bank and the APF against potential losses under specific conditions.

Key facts

  • MPC of the Bank of England asked for an expansion in the maximum limit of purchases by the Asset Purchase Facility (APF).
  • The increase in the size of the APF is £100 billion, raising it from £645 to £745 billion.
  • The risk control framework previously agreed with the Treasury will remain in place for monitoring risks to public funds through regular oversight meetings and enhanced information sharing.
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