The Treasury has struck a deal with the Bank of England to get £127bn of Term Funding Scheme liabilities off its books, which will bring the debt to GDP ratio down from 85pc to about 79pc of GDP gov.uk/government/pub…
The arrangement will also give the Bank the power to lend "against a wider range of collateral to a wider range of counterparties for longer terms and at lower prices than ever before". Ie. its a lender of last resort that can pretty much step in anywhere than needs it
The Treasury has clarified that the arrangement will not move the debt off its books. They played that trick with the Housing Associations but not this time. So scrap that first tweet about reducing the the debt to GDP ratio
