Asset Purchase Facility

The Bank is today publishing details about how it intends initially to operate the Asset Purchase Facility agreed with HM Government and described in an exchange of letters between the Chancellor and the Governor, dated 29 January.
Published on 06 February 2009

The broad aim of the Facility is to help improve financing conditions for companies.

The Bank has been authorised to purchase up to £50 billion of high-quality private sector assets under the Facility. The following sterling assets are initially eligible for purchase: commercial paper, corporate bonds, paper issued under the Credit Guarantee Scheme (CGS), syndicated loans and asset-backed securities created in viable securitisation structures. In order to control the financial risks associated with such transactions, the Bank is authorised to purchase only high-quality assets, broadly comparable to investment grade. The Bank's operations will vary according to the structure of, and conditions prevailing in, particular markets; and will evolve through time, in the light of experience with operating the Asset Purchase Facility and feedback from the market.

PDFPress release

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