New UK Government Measures To Support The UK Banking Sector: Key Points For Asset-Backed Securities (ABS)

This article was originally published 20th January,

2009

On 19 January, 2009, the UK Government announced the details of

a second support package for the UK banking sector in attempt to

address current barriers to lending in the wholesale and consumer

markets. The key measure in respect of securitisation is the

guarantee scheme for ABS ("ABS Scheme"),

which implements some of the recommendations of the Crosby Report

published in November 2008.

ABS Scheme

In its announcement, the UK Government has published only

limited information in respect of the ABS Scheme; although further

details are to be announced by the Debt Management Office in due

course.The main features of the ABS Scheme are as follows.

The ABS Scheme will commence in April 2009, subject to state

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