Jul 24, 2017 · 1 min read
Not sure I’d want to pass legislation to cancel the loans sold to the private sector. Not without offering first to buy back those loans at a ‘fair’ price . If the gov just canceled them, leaving investors high and dry , what will this mean to future government backed debt sold in the future? Would the gov loose its recognition for selling ‘100% guaranteed’ gilts, would investors be scared that gov may tear up its side of the bargain, by simply passing legislation ?
What this fair price would be, I do not know… but it would need to be enough to cover the investor costs and a bit on top…. in order to keep trust in the government, but not so high that investors made a killing.
