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Notification of Contingent Liability

24 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

The Bank of England's Monetary Policy Committee (MPC) requested an expansion of the Asset Purchase Facility (APF) to support the economy through the disruption caused by Covid-19.

Action Requested

I have authorised an increase in the total size of the APF by £200 billion, bringing it from £445 billion to £645 billion. The Government will continue to indemnify the Bank and the APF from any losses arising out of this facility, with provisions sought through normal supply procedures if necessary.

Key Facts

  • The MPC requested an expansion in the maximum limit of purchases that may be undertaken by the Asset Purchase Facility (APF) up to £200 billion.
  • This will bring the total size of the APF from £445 billion to £645 billion.
  • The Government will continue to indemnify the Bank and the APF from any losses arising out of, or in connection with, the facility.
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