This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29844961
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Government to 'retire' some of its WW1 debt | Government to 'retire' some of its WW1 debt |
| (35 minutes later) | |
| The UK Government has said that it will 'retire' £218m of the UK's £2bn First World War debt by refinancing bonds originally issued by Winston Churchill. | |
| The UK has paid a total of £1.26bn in interest on these bonds since then. | The UK has paid a total of £1.26bn in interest on these bonds since then. |
| The debt has not been paid off before because of the relatively low interest it incurs. | The debt has not been paid off before because of the relatively low interest it incurs. |
| The Treasury plans to cut the annual cost of the debt by re-borrowing money at current market rates. It is the first such move for 67 years. | The Treasury plans to cut the annual cost of the debt by re-borrowing money at current market rates. It is the first such move for 67 years. |
| The bonds that Chancellor George Osborne has acquired have a lower rate than the 4% interest on the debt. | The bonds that Chancellor George Osborne has acquired have a lower rate than the 4% interest on the debt. |
| The continued existence of the war bond debt illustrates the lasting shadow cast by World War One. | The continued existence of the war bond debt illustrates the lasting shadow cast by World War One. |
| According to the UK Treasury there are currently 11,200 registered holders of the bonds. | According to the UK Treasury there are currently 11,200 registered holders of the bonds. |
| Winston Churchill first issued "4% Consols" in 1927 when he was Chancellor partly to refinance bonds from the First World War. | Winston Churchill first issued "4% Consols" in 1927 when he was Chancellor partly to refinance bonds from the First World War. |
| In addition to the war bonds, some of the debt being refinanced by the Treasury dates back to the 18th Century. | In addition to the war bonds, some of the debt being refinanced by the Treasury dates back to the 18th Century. |
| One of these bonds was issued by William Gladstone in 1853 to consolidate the capital stock of the South Sea Company, which was founded in 1711. | One of these bonds was issued by William Gladstone in 1853 to consolidate the capital stock of the South Sea Company, which was founded in 1711. |
| The South Sea Company collapsed during the South Sea Bubble financial crisis of 1720, leaving behind it a lot of debt. | The South Sea Company collapsed during the South Sea Bubble financial crisis of 1720, leaving behind it a lot of debt. |
| In 1932 Chancellor Neville Chamberlain converted some war bonds into "perpetuals". This gave the government the right not to pay back the loans, as long as they continued paying 3.5% interest on them. | |
| Perpetual bonds, as the name suggests, pay a steady stream of interest forever. |