UK starts a massive sale of bonds to finance the coronavirus fight

UK starts a massive sale of bonds to finance the coronavirus fight

Coronavirus cases across Europe are still increasing. Over 1,192,008 cases with 23,724 deaths have been registered on the continent by various countries. The countries of the continent are still struggling to curb the spread of this contagious virus.

The United Kingdom, one of the countries on the continent, is planning a massive sale of bonds by its government to finance the fight against coronavirus. Many resources, including face masks, gowns, and gloves, have been used to fight this COVID-19, and the government plans to start selling the bond in the next three months. The funds are used to combat growing coronavirus cases.

Britain, like any other country in the world, is at risk of economic decline as various measures are taken to curb the spread of this pandemic.

On Thursday, the British Debt Management Office (DMO) announced that it will be issuing £ 180 billion of government debt between May and July, which will be used to fund the unprecedented amount of action last month to avert the collapse of the UK economy.

Previously, DMO had planned to sell £ 156.1 billion in bonds between April 2020 and March 2021.

According to the UK finance Secretary, the higher volume of issues should not be necessary for the rest of the fiscal year.

The massive sale of ponds will help cover the £ 30 billion pledged by the UK government to back public health and halted businesses as well as provide broader economic stimulus in the face of the coronavirus outbreak.

The Treasury announced that another update of the DMO’s debt sale plan would be announced on June 29.

Although the UK government bond saw a slight increase in early trading on Thursday, 11 primary traders have already predicted that the DMO will announce the issuance of around £ 300bn bonds for the full 2020/2021 financial year.

On the other hand, the Bank of England has agreed to expand the government overdraft facility with the central bank if it has difficulty raising the money in the debt market. However, investors have shown little evidence that they are valuing the rise in public borrowing.

In the UK, over 18,700 people have died from the virus and over 138,000 cases have been registered across the country. The country enforces the ban for a fifth consecutive week, and most people have been prevented from leaving their homes if they don’t just want to buy groceries, exercise, or do jobs that are considered essential.

The government also plans to test at least 20,000 households across the UK to determine how the COVID-19 has spread across the country. This was confirmed by Health Minister Matt Hancock on Thursday. This happens after the country has been criticized for its testing strategy. The country has been claimed to respond slowly to contain the virus. Deutsche Bank said the country is likely to be one of the laggards in the world to overcome the stringent barriers imposed to curb the spread of the coronavirus.

Charalotte Griffith is assignment Journalist at Chroniclex, Charalotte has covered Business, Politics and many other beats in her Journalism career and is currently living in Cleveland for more than 15 years. Charalotte has appeared periodically on national television shows and also has published her articles many regional publications such as Huffington Post and Mashable etc.

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