HM Treasury News Release
92/97	              		 	       29 July 1997	
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          PROPOSAL ON UK GOVERNMENT DEBT AND CASH
           MANAGEMENT PUBLISHED FOR CONSULTATION 


The Government today published a proposal for consultation on 
the arrangements for government debt and cash management, in 
answer to a written Parliamentary Question.  The Treasury 
proposes to establish an agency to implement the annual 
borrowing programme, to liaise and deal with participants in 
the gilts market and to manage the Exchequer’s cash position.

The new debt management agency will undertake the main policy 
functions and liaison with the gilts market from April 1998.  
The Bank of England  will continue to discharge its current 
functions in the gilts market until the end of this financial 
year.



Notes for editors

1.	The proposal for consultation is available, on request, 
from the Treasury Press Office.  The deadline for comments on 
the proposal is Friday 12 September.

2.	The Chancellor’s letter of 6 May to the Governor of the 
Bank of England announced the Government’s decision that:

" the Bank’s role as the Government’s agent for debt management, 
the sale of gilts, oversight of the gilts market and cash 
management will be transferred to the Treasury."


The full text of the Chancellor’s letter of 6 May 1997 to the 
Governor is given in Treasury Press Release 40/97.

3.	The full text of the proposal for consultation, this and 
other Treasury Press Releases are available on the Treasury’s 
Internet service. The world wide web address is 
http://www.hm-treasury.gov.uk