Guaranteed Equity Bond

HC Deb 07 March 2002 vol 381 cc468-9W

Mrs. Lawrence

To ask the Chancellor of the Exchequer what the accounting arrangements are for National Savings and Investments' Guaranteed Equity Bond [41860]

Ruth Kelly

As with most other National Savings and Investments instruments, the Guaranteed Equity Bond is a liability of the National Loans Fund (NLF). In order to avoid exposing the Exchequer to movements in equity prices, a matching equity index swap is being executed on the Debt Management Account (DMA) and managed by the debt management office.

Both NLF and DMA accounting officers are content that appropriate risk management processes are in place and that, overall, the GEB will provide cost-effective financing for the Government that is consistent with National Savings and Investments' primary role.