MNI: UK Treasury Outlines May-July Funding Remit: Text

     LONDON (MNI) - The UK Treasury has announced an update to the financing

remit for the Debt Management Office.

     The text of the announcement follows:

     HM Treasury announces revision to the UK Debt Management Office's financing

remit 2020-21 

     The government has announced an unprecedented package of measures to

provide the critical support needed by individuals, families and businesses,

through the economic disruption caused by COVID-19.

     Published 23 April 2020 From: HM Treasury placeholder This support, and the

economic impact of COVID-19, will necessarily increase the government's

financing requirement compared to that set out at Budget 2020. The Chancellor

has already outlined this will be fully funded through the government's normal

debt management operations.

     A revision to the UK Debt Management Office's (DMO's) gilt issuance plans

for April 2020 was therefore published on 31 March 2020, and HMT committed to

provide a broader update to the financing remit on 23 April.

     HM Treasury (HMT) is today outlining a revision to the DMO's financing

remit for 2020-21, covering May to July 2020 inclusive. The DMO is also

publishing details of the revised planned gilt issuance schedule for May to July

2020, on its website. Planned gilt sales will now total GBP180 billion over this

three-month period based on the government's assessment of its financing

requirements.

     The temporary and immediate nature of the unprecedented support announced

for people and businesses means the government expects that a significantly

higher proportion of total gilt sales in 2020-21 will take place in the first

four months of the financial year, in order to meet the immediate financing

needs resulting from COVID-19. This higher volume of issuance is not expected to

be required across the remainder of the financial year.

     A further update to the DMO's financing remit and planned issuance schedule

for 2020-21 will be announced on Monday 29 June.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$B$$$,M$E$$$,MC$$$$,M$$FI$]