Money

[Vornwend]

I read that if we delayed leaving we’d be liable for massive bail out costs for EU member states, that would add considerably to the mess we’re looking at already
Rob

AFAIK the bailout fund is only relevant to the 19 Eurozone countries so would not impact the UK. The "Eurogroup countries" agreed to a bail out fund of €540bn in early April. These funds are effectively loan capital underwritten by the 19.

I think that you’re right only if we leave on the stated date, But if our departure is delayed i read as a country we’ll be liable to contribute to the EU bail out fund costs.
Rob

I don't know where you read that but the only recent reference I can find is some recent scare mongering from Farage (surprise, surprise). The bailout fund relates to Eurozone members only - even if the UK and EU agree to extend the transition I can't see how we would be implicated. We have some remaining funds in the European Investment Bank (EIB) but these are now part of the agreed divorce settlement.

Indirectly the IMF can provide funds to the EU (some of which is provided by the UK) but that would continue regardless of our membership status. The UK has not contributed to any EU bail out since 2010 (when it helped Ireland and Portugal) but these were fully recovered. We have been exempt from any Eurozone bailouts since agreement was reached in 2011.

 

[ronk]

The BBC says:-
How will the money be raised?
At first the government will raise money by borrowing from investors.
They could be individuals, companies, pension funds, or foreign governments who lend the money to the UK government by buying bonds.
A bond is a promise to pay the money back in the future, and pay interest in the meantime.
The Bank of England will buy some of those bonds, which will make raising the money easier.

So it seems some people will benefit!