UK Government to Sell $32B in Bank Assets

U.K. Chancellor of the Exchequer, George Osborne, has unveiled a £22 billion ($32 billion) sale of U.K. bank assets owned by the government.

The government is aiming to sell off £13 billion worth of mortgage assets it took over from Northern Rock and Bradford & Bingley, two U.K. lenders which collapsed during the credit crisis, and £9 billion worth of its stake in Lloyds Banking Group.

Osborne kicked off Wednesday’s Budget pledging to cut the deficit and warning of the danger of a Greek exit from the euro zone.

He also revealed more optimistic forecasts by the independent government forecaster, the Office for Budget Responsibility, which now expects the U.K.’s gross domestic product (GDP) to expand by 2.3 percent next year, up from the 2.2 percent forecast in December. However, these revisions are not as high as some economists had hoped for.

This Budget is particularly important as it is just seven weeks before the most difficult-to-call U.K. election for close-to a century.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza