National debt interest & terms

Nick Straughan made this Freedom of Information request to UK Debt Management Office

This request has been closed to new correspondence. Contact us if you think it should be reopened.

The request was partially successful.

Dear UK Debt Management Office,

It is my understanding from reading Bank of England FOI requests that the cost of financing the UK Governments debt is managed by the UK Debt Management Office.

1. What was 'loaned' to the UK government / HM Treasury which created the ‘national debt’?
2. Who is the ‘national debt’ owed to?
3. What is owed (GBP, USD, guilts, gold, bonds etc. ?), including any interest or additional payments on top of what was actually ‘loaned’ in the first place?
4. Why did HM Treasury not create and loan the ‘money’ for itself, with 0%interest?

Yours faithfully,

Nick Straughan

RecordsManagementService, UK Debt Management Office

Dear Ms Straughan,

Thank you for your request for information about cost of financing the
UK Government debt. Your request was received on 30 April 2010 and we
are dealing with it under the terms of the Freedom of Information Act
2000.

Once we begin to look more closely at answering your question we may
need to contact you either to ask for more information, or to make the
request clear. In some circumstances a fee may be payable and if that is
the case, we will let you know. A fees notice will be issued to you, and
you will be required to pay before we will proceed to deal with your
request.

If you have any queries about this e-mail, please contact me. Please
quote the reference number FOI/20100430

Valeria Mizuno-Turner
Records and Web Administrator
United Kingdom Debt Management Office

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Julie Zielstra, UK Debt Management Office

1 Attachment

Dear Mr Straughan,

Please find attached our response to your request for information under
the Freedom of Information Act 2000.

Regards,
Julie Zielstra

Information Manager
Records & Information Management Team
UK Debt Management Office

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Nick Straughan

Dear Julie Zielstra,

Thanks for your response. You state that items 1-3 are exempt under section 21. You did not clarify the reason it is exempt, please can you clarify.

Thank you for the links, but these appear to be very complex reports only decipherable by an accountant or economics analyst... of which I am neither.

I managed to accertain that as of December 2009 the Total central government sterling debt was £883.4bn (excluding holdings)I am not clear if there are other types of debts outstanding.

From dmr1011.pdf I can see that The Bank of England bought £198.3 billion in gilts. What type of gilts are they? What term and what percentage?

dmr1011.pdf also states that Gilts will be auctioned, but my question is WHO bought these gilts auctioned by the government and what are the terms?

In simple terms - WHO bought the gilts and other 'promises to pay'??? and what are the terms of those agreements?

If you quote section 21 again, please tell me WHY you refuse to tell me the simple answer to the simple questions.

Yours sincerely,

Nick Straughan

Julie Zielstra, UK Debt Management Office

Dear Mr Straughan,

I'm writing in response to your email dated 17 May 2010.

Firstly, I'll reply to your question about the exemption we quoted in our
response to your request for information. As you note we already publish
the information (Section 21) that provided the answers to the first three
questions of your request. Under the Act, a Section 21 exemption is
information accessible by other means, and we helpfully provided links to
the parts of our website where you found information.

Secondly, you go on in your email to create a new request for information
under the Act.  I am writing to acknowledge your request for information
under the Act and the deadline for response to this new request is 19 June
2010.  We may write to you to seek clarification on these questions,
which I reproduce here without editing but have numbered to aid future
reference:

     Q1) I managed to accertain that as of December 2009 the Total
central

     government sterling debt was £883.4bn (excluding holdings)I am
not

     clear if there are other types of debts outstanding.

  

     Q2) From dmr1011.pdf I can see that The Bank of England bought
£198.3

     billion in gilts. What type of gilts are they? What term and what

     percentage?

     Q3) dmr1011.pdf also states that Gilts will be auctioned, but my

     question is WHO bought these gilts auctioned by the government
and

     what are the terms?

 

     Q4) In simple terms - WHO bought the gilts and other 'promises to

     pay'??? and what are the terms of those agreements?

I suggest that to familiarise yourself with this topic, you please read
the general and introductory information about gilts provided on our
website.  To be helpful, I've listed three links below to information
that may be of use:

About Gilts

http://www.dmo.gov.uk/index.aspx?page=Ab...

Buying and Selling Gilts

http://www.dmo.gov.uk/index.aspx?page=Gi...

UK Government Securities: A Guide to 'Gilts'

http://www.dmo.gov.uk/index.aspx?page=pu...

 

Regards,

Information Manager

Records & Information Management Team

UK Debt Management Office

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RecordsManagementService, UK Debt Management Office

1 Attachment

Dear Mr Straughan,

Please find attached the response for your FOI request.

Regards,

Valeria Mizuno-Turner

Records and Web Administrator

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Mark left an annotation ()

I will enjoy the day (and it will come) that these people, working for this corrupt system, get their comeuppance. I am sick to the teeth of these incompetent yet deceptive scum replying with bullshit to straight questions.
Note to them: You and/or your families will be destroyed under this system like everyone else's. You're idiots because you support and excuse it. There is a solution but you will do whatever possible to maintain this SHIT we're living under!

jason greco left an annotation ()

l agree with Mark. Their rubbish replies are just more evidence of how many shills and gatekeepers they employ in order side track us with crap replies. The flame will consume everything and when nothing is left to consume? the flame will consume its self. It's government policy to never ever repay back the national debt and to keep themselves in debt to the banks. However, the national debt doesn't belong to the people, it belongs to the government and the government will tax us more and more in order to try and pay their bad debts. The people who work for the government are bought and sold, and are the biggest traitors to the people.