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Notification of Contingent Liability

22 June 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 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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