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ACTUARY AND EXPERTS FROM THE DERIVATIVES AND DEBT MARKETS SUGGESTED BY MARGOLIS, THE NEXT STEP MIGHT BE TO SEE WHETHER ANY FINANCIAL INSTITUTION IS PREPARED IN PRINCIPLE EITHER:
(A) TO PAY MONEY NOW, IN EXCHANGE FOR THE 'PENSIONS RECEIVABLES'' SPREAD OVER A PERIOD OF 10 YEARS OR MORE IN THE
FUTURE: OR
(B) TO OFFER AN EXCHANGE-RATE HEDGING MECHANISM TO
INDIVIDUAL CIVIL SERVANTS ON SPECIAL GROUP TERMS.
IF SO THE DETAILS COULD THEN BE EXPLORED FURTHER.
5. WE SHOULD THEREFORE BE GRATEFUL TO KNOW WHETHER STANDARD CHARTERED BANK AND WARDLEYS HAVE GIVEN DEFINITIVE ADVICE ON THESE POINTS AND WHETHER YOU ENVISAGE APPROACHING ANY OTHER INSTITUTIONS, WHETHER IN THE BANKING OR INSURANCE SECTORS. WE ALSO WONDER WHETHER MONETARY AFFAIRS BRANCH HAVE YET PRONOUNCED ON THE POSSIBILITIES IDENTIFIED BY MARGOLIS OR ANY OTHER PRIVATE
SECTOR SCHEMES UNDER CONSIDERATION.
6. IT WOULD ALSO BE VERY HELPFUL TO KNOW WHERE MATTERS NOW STAND ON YOUR CONSIDERATION OF OTHER OPTIONS, IN PARTICULAR
PARTIAL FUNDING.
7.
WHEN YOU HAVE FINALISED YOUR POSITION ON GENERAL PENSION SAFEGUARDS, WE SHALL PROBABLY NEED TO REVERT TO THE CHINESE, AS GUO FENGMIN SUGGESTED AT JLG XX LAST SEPTEMBER (WHEN OF COURSE WE SAID THAT THE MOST OVERWHELMING OBSTACLE TO PARTIAL FUNDING
WAS THE TIGHTNESS OF THE RESERVES POSITION).
8. ON SPOS, WE DOUBT THAT WE SHALL BE ABLE TO MAKE PROGRESS HERE UNTIL DECISIONS ARE TAKEN, ONE WAY OR THE OTHER, ON
STERLING SAFEGUARDS.
HURD
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