Under the scheme, investors will benefit from the guarantee provided to securities issued by special purpose vehicles collateralised with residential mortgages. Guarantees allocated under the scheme will be limited to a total of £50 billion.
The Commission approved the UK's Asset-Backed Securities Guarantee Scheme, which forms part of UK measures to support the banking industry during the current financial crisis.
The measure is intended to expand the funds available to banks to promote lending to homebuyers and homeowners. Under the scheme, investors will benefit from the guarantee provided to securities issued by special purpose vehicles collateralised with residential mortgages. Guarantees allocated under the scheme will be limited to a total of £50 billion.
Press release
© European Commission
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