Osborne to Finish Paying Off U.K.’s Century-Old WWI Debts
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A century after the start of World War I, Chancellor of the Exchequer George Osborne announced he’ll redeem the last of the U.K.’s gilts issued to pay for that struggle.
The Treasury will redeem the outstanding 1.9 billion-pound ($3 billion) undated War Loan that pays 3.5 percent. That gilt was itself issued in 1932 in exchange for a 5 percent 1929-47 War Loan issued in 1917, the year before the war ended. It is by far the most widely held U.K. government bond, with 120,000 investors. The government is also looking at other undated gilts in its portfolio, including some dating back to the 18th century.