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Tuesday, March 13, 2012

''UK may take out 100-year loans''

From Trader & Guardian

"The Treasury is planning to take advantage of Britain's historically low interest rates by taking out loans which will not be repaid for 100 years or more.

Chancellor George Osborne will use next week's Budget to launch a consultation on plans to issue "super-long" gilts which do not have to be paid off for many decades - or even perpetual gilts, on which the capital is never repaid, but interest continues to be charged for ever.

The move would mean that children not yet born will continue to pay interest throughout their lives on debts racked up during the financial crisis of 2008/09."

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