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Letter from Bank of England Governor to Chancellor
Thank you for your letter of 9 November outlining the agreement we have reached to transfer gilt coupon payments received by the Asset Purchase Facility (APF), net of interest costs and other expenses, to the Exchequer. The previous arrangement was for these cash flows to accumulate on the APF's balance sheet. Because the APF is indemnified by the Government, any gains or losses it makes arc ultimately due to the Exchequer. So the gilt coupons received by the APF amount to payments from one part of the public sector to another. As the scale and likely duration of the APF has increased significantly since its ... (full story)