Storms can be presaged by the blowing of straw in the wind"of . Well the market landed a hefty bale of the stuff on Gordon Brown and Alastair Darling's desk today.Today, in the normal way of things the Treasury Debt Management Office - auctioned £1.75bn of a 40 year bond ( of interest principally to annuity issuers - insueres pensions etc.,).
The market picked up 93% or only £163 Mn. of the issue.
The Debt Management Office has a Herculean task of borrowing at least £147.9bn of gilts in the next 12 months - there are many who say uncontrolled public expenditure might mean they could be looking for £200Bn.
There must be some sweaty palms in the Treasury this evening.
"Second is the question of accountability. The public, including United fans, cannot know who holds the debt in United. When the Glazers bought the club for £831m, the family itself paid £272m cash, £284m was loaned by their bank, JP Morgan, and "syndicated" to other banks, and the other £275m, which the family could not borrow at standard rates, was advanced at very high interest by three hedge funds, Citadel, Och-Ziff and Perry Capital. In 2006 the Glazers managed to refinance those original loans, but there has been no public disclosure of who holds the £425m, the other £90m, orthe high-interest £152m "payment in kind" loans"...
ReplyDeletehttp://tinyurl.com/c7fmm8
PFI schemes will have to come "on-balance" from April 2009.
ReplyDeleteMore info from this Irish Accountancy site here (discussing the effects on Northern Ireland).
Surely this will mean more debt on the government's books?