Portfolio

Treasury to borrow record £45bn for Covid-19 measures

By Sean Farrell

Date: Tuesday 31 Mar 2020

Treasury to borrow record £45bn for Covid-19 measures

(Sharecast News) - The Treasury will seek to borrow a record £45bn in April to help fund the government's support for the economy during the Covid-19 crisis.
The government Debt Management Office (DMO) said the Treasury had authorised an "exceptional revision" to its plans for gilt issuance. Gilts are UK government bonds.

"The revised calendar is designed to raise £45 billion in total through gilt sales over the course of the month, principally through the sale of conventional gilts and in maturities across the curve," the DMO said.

The amount is about three times what was planned before the crisis erupted. In April 2019 the DMO issued just £9.5bn in new debt.

Chancellor Rishi Sunak has pledged to support businesses with loans and grants and to subsidise 80% of earnings for workers unable to work during the crisis. That scheme is due to start paying out in April.

The two sales of gilts announced for the week beginning 30 March will go ahead as planned to raise £5bn. From 6 April the DMO will hold four auctions a week.





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