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Treasury set to introduce never ending bonds
THE UK government wants to borrow cash on a “perpetual” or “super long” basis, by offering bonds that may never actually be paid off.
Some new loans will last for 100 years, twice as long as the current longest maturing bonds.
In next week’s Budget chancellor George Osborne is expected to unveil the plan that he hopes will “lock in” the government’s current low rates of interest.
Osborne believes the move could save the Treasury billions in interest payments over the next few years.
“This is about locking in for the future the tangible benefits of the safe haven status we have today,” a Treasury source said last night.
“The prize is lower debt interest payments for taxpayers for decades to come.”