Feb borrowing Falls Despite Large EU........>

UK DATA: Feb borrowing Falls Despite Large EU Payment

-UK Feb borrowing Stg200m vs Stg1.228bn Feb 2018

-UK YTD borrowing -43.8% over 2017/18 to Stg23.1bn, lowest since '01/02

-UK Feb net debt ex-BOE 74.1% of GDP, lowest since May 2012

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Public sector borrowing fell in February, despite a Stg2.9bn 

payment to the EU. The larger-than-usual remittance was linked to the 

the bloc's so-called draw-forward mechanism and affected all member 

states. Had that budgetary contribution fallen into line with last 

year's payment of Stg1.9bn, the government would have recorded a surplus 

for the second straight month, following a repayment of Stg13.284 

billion in Jan (revised downward from the originally-reported 

Stg14.9bn).  The Treasury has exceeded the OBR's revised full-year 

borrowing target of Stg22.8bn. However, March borrowing has averaged 

Stg1.4 billion over the past two years, suggesting the Treasury will 

struggle to reach the new OBR target.