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Scotland to Raise Money on International Bond Markets for First Time, says Humza Yousaf

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Scotland Plans to Issue International Bonds for the First Time, Says Scottish Government Leader

Scotland is set to enter the international bond market for the first time, according to Humza Yousaf, the leader of the Scottish government. Yousaf, speaking at the Scottish National Party’s (SNP) conference, stated that the move would demonstrate the country’s credibility and support its pursuit of independence.

Yousaf confirmed that the SNP government intends to issue Scotland’s inaugural bond by the end of the current parliamentary term, pending the necessary due diligence and market testing. The bond issuance is aimed at showcasing Scotland’s ability to access international capital markets and its readiness to become an independent nation.

The funds raised through the bond issuance will be allocated to infrastructure projects aligned with the government’s key priorities, which include improving public services, fostering a green economy, and ensuring equality of opportunity.

While the specific amount to be raised was not disclosed, Yousaf emphasized that the decision to issue international bonds was made possible by legislation passed in 2016, which devolved additional powers to Scotland. Under the revised fiscal framework, Scotland’s capital borrowing limits will increase with inflation, rising from the current levels of £450 million per annum and £3 billion cumulatively.

This move marks a significant milestone for Scotland, as it endeavors to assert its economic independence. By tapping into the international bond market, the Scottish government aims to demonstrate its financial prowess and attract investment for key infrastructure projects. The move also signals the SNP’s determination to pursue independence, as it seeks to establish Scotland as a viable and credible nation on the global stage.

The decision to issue international bonds has received both support and criticism. Proponents argue that it will showcase Scotland’s ability to manage its own finances and establish its economic viability. They believe it will provide an opportunity for Scotland to diversify its funding sources and potentially secure lower borrowing costs.

However, skeptics raise concerns about the potential risks associated with issuing international bonds. They argue that Scotland’s creditworthiness may be questioned, given the uncertainties surrounding its future relationship with the United Kingdom. Additionally, critics question whether the SNP government has the necessary fiscal discipline and experience to navigate the complexities of the international bond market.

Despite the differing opinions, the Scottish government remains optimistic about the potential benefits of issuing international bonds. It views this move as a crucial step towards asserting Scotland’s economic independence and establishing its credentials on the global stage.

As Scotland prepares to enter the international bond market, analysts will closely monitor the reception of the bond issuance by investors. The success or failure of this endeavor will provide valuable insights into Scotland’s financial standing and its ability to attract international investment.

More detail via Reuters here… ( Image via Reuters )

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