UK Govt to 'retire' £218m of its £2bn WWI debt

Discussion in 'Europe and Russia' started by pmaitra, Nov 1, 2014.

  1. pmaitra

    pmaitra Moderator Moderator

    Mar 10, 2009
    Likes Received:
    EST, USA
    I wish to ask some questions, and we should be able to broaden the discussion with other examples on war debt and related activities, to get a better understanding of what really happens with war debt.

    Government to 'retire' some of its WW1 debt

    Who was the interest paid to? Ok, I get it, the bond holders. Who could they be?

    This part if not clear to me. What was the original interest rate? What is the current interest rate. Who will buy the bonds?

    Historical note.

    What are "Consols?"

    Historical note.

    Interest paid to whom? Interest paid by whom?

    @Sakal Gharelu Ustad, @Mad Indian, @Known_Unknown, and anyone interested.
    Last edited by a moderator: May 10, 2015
  3. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

    Apr 28, 2012
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    No idea about consols. As far as the interest is concerned- the bond issuer i.e. the UK government in this case will pay the interest. Also, UK has a mature bond market where you can sell bonds on the secondary market. So, the identity of the bond holder can be very different from the person who bought them the first time.
    pmaitra likes this.

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