(2) what the monetary value is of the agreements with banks signed under the Guarantee scheme for Asset Backed Securities announced on 19 January 2009.
The ABS guarantee scheme was made available at Budget 2009, extending funding options open to banks and building societies alongside other Government support schemes, including the existing Credit Guarantee scheme. Demand for the guarantees will depend on eligible institutions' access to alternative sources of funding and demand for mortgage credit in the economy.
A list of eligible instruments guaranteed under the scheme will be made available by the DMO at:
The announcements made in February and March set out an in-principle agreement with the Royal Bank of Scotland and the Lloyds Banking Group with regard to their participation in the Asset Protection scheme. These agreements were subject to further due diligence, negotiation on the details of the scheme terms, and state aid and shareholder approval. The final agreements remain under negotiation.