Guarantee Schemes

2008 Credit Guarantee Scheme

The 2008 Credit Guarantee Scheme forms part of the Government’s measures announced on 8 October 2008 to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers. In summary these measures are intended to:

• provide sufficient liquidity in the short term;
• make available new capital to UK banks and building societies to strengthen their resources, permitting them to restructure their finances, while maintaining their support for the real economy; and
• ensure that the banking system has the funds necessary to maintain lending in the medium term.

The Scheme became operational on 13 October 2008 and closed to new issuance on 28 February 2010.

Details on the Scheme and related information appear below

Scheme update

• Update: Report on operation of the scheme during the initial drawdown period (29 March 2010) 53KB

Operation of the Scheme

• The Rules of the Scheme and proforma application form
• Changes to the previous version of the Rules of the Scheme
• Credit Guarantee Scheme Market Notice
• The Government's Deed of Guarantee
• List of liabilities guaranteed under the Scheme

Market notices and press releases

• Market Notice: Review of the Government's 2008 Credit Guarantee Scheme (15 December 2008)
• Market Notice: Extension of Drawdown Window for the Government's Credit Guarantee Scheme (13 October 2009) 12KB
• Market Notice: Extension of Drawdown Window for the Government's Credit Guarantee Scheme (09 December 2009) 12KB
• Market Notice: European Commission State Aid Approval for Extension of Drawdown Window and Rules Amendments for the Government's Credit Guarantee Scheme (17 December 2009) 24KB
• Update: Extension of Drawdown Window for the Government's Credit Guarantee Scheme (19 January 2009) 13KB
• Bank of England Market Notice: Operational Standing Lending and Deposit Facilities; and Discount Window Facility
• European Commission press release: state aid approval to modifications (23 December 2008)
• European Commission press release: state aid approval to modifications (15 April 2009) (link opens in external site)

The following information and press releases relating to the Credit Guarantee Scheme appear on the HMT website

• Parliamentary Question: Review of the Government's 2008 Credit Guarantee Scheme
• HM Treasury Press Notice: Review of the Government's 2008 Credit Guarantee Scheme
• Guidance on HMT Treasury Credit Guarantee Scheme and Bank Recapitalisation Fund
• Financial support to the banking industry
• Treasury statement on financial support to the banking industry

For further information about the Credit Guarantee Scheme please contact: