Slow birth of sterling commercial paper. (establishing a sterling corporate debt market in London)

SLOW BIRTH OF STERLING COMMERCIAL PAPER

Margaret Thatcher’s Treasury and the Bank of England have largely failed in their attempts to create an active sterling debt market for corporate borrowers. Since the removal of UK exchange controls in 1979, the UK domestic markets have remained stifled by regulation and the failure of the authorities to agree on their objectives. But the introduction of a sterling commercial paper market may herald a more successful era.

The merchant banks were disappointed by the absence of any provision for such a market in the Chancellor of the Exchequer’s budge speech of March 18; they had two or three deals arranged and ready to go, including one for a US name.