§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer what plans he has to repay the Government's overdraft on the Ways and Means account at the Bank of England; and if he will make a statement. [77473]
§ Ms Hewitt[holding answer 18 March 1999]: The Government's Ways and Means overdraft with the Bank of England is the main short-term financing instrument currently used to balance the change in the Government's daily cash position. Responsibility for cash management is due to be transferred to the UK Debt Management Office during the course of 1999–2000. When the transfer is complete, Ways and Means will no longer be drawn upon for cash management purposes, and methods will be explored to repay the Ways and Means balance. This will rationalise the Government's short-term borrowing.
§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer if it is an EU treaty requirement that countries applying to join the euro should repay any overdraft that they may have with their domestic central bank. [77472]
§ Ms Hewitt[holding answer 18 March 1999]: In accordance with Article 104 and Article 109e(3) of the EC Treaty, overdraft facilities or any other type of credit facility with the ECB or the national central banks of Member States in favour of Community institutions or bodies, central Governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States were prohibited from the beginning of Stage Two of EMU.
However, in accordance with paragraph 11 of Protocol No. 11 to the EC Treaty, the UK Government may maintain their 'ways and means' facility with the Bank of England if and so long as the UK does not move to Stage Three of EMU.