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Notification of a Contingent Liability

18 March 2020

Proposing MP
Rishi Sunak Con
Richmond and Northallerton
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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.
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