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Neil Wilson's avatar

Involuntary default is impossible as all UK bonds are denominated in Sterling. Voluntary default would require rewriting primary legislation.

HM Treasury is required to repay borrowing under s12(4) of the National Loans Act 1968 which gives it a standing charge over the Consolidated Fund without further spending approval from Parliament.

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Brian Romanchuk's avatar

Yes. I sadly had a “not” in the text which should have been deleted when I edited the sentence.

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