My honourable friend the Exchequer Secretary has made the following Written Ministerial Statement.
The credit guarantee scheme (CGS) was introduced as part of a package of measures to support the stability of the banking system and to protect savers and depositors. The scheme makes available, to eligible institutions, a government guarantee of new short and medium-term debt issuance of up to three years’ maturity.
As announced at the Pre-Budget Report in 2009, the CGS closed for new issuance on 28 February 2010. In consequence, the maximum amount currently outstanding represents the maximum contingent liability under scheme rules. On 24 March 2010 issuance stood at £125 billion. HM Treasury is therefore notifying a revision to the contingent liability to the maximum currently outstanding to reflect this and in addition is publishing a short report providing details of scheme use on 29 March 2010 on the Debt Management Office’s website.