The Credit Guarantee Scheme (CGS) has closed following the last CGS guaranteed debt issuance reaching maturity. Government exposure under the CGS peaked at just under £140 billion. There is no longer any taxpayer exposure to the scheme, which has closed without any payouts.
The Financial Secretary to the Treasury, Greg Clark said: “The closure of the Credit Guarantee Scheme marks another important step on the path towards a stable financial system, and a banking sector no longer reliant on taxpayer support". “With the Special Liquidity Scheme and Asset Protection Scheme already wound up, this sees the last of the big guarantee programmes from the financial crisis come to an end.”
The CGS closing follows RBS’s exit from the Asset Protection Scheme last month. During this Parliament, support provided by the taxpayer to the banking sector in the form of guarantees has fallen by over £450 billion, a drop of almost 95 per cent.
Through credit easing measures such as the Funding for Lending Scheme, the Government continues to ensure that all banks can make loans cheaper and more easily available for consumers and businesses.
Press notice
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