UK To Cover Debt Until Possible Independence
The Treasury has pledged to honour all UK Government debt up to the date of potential Scottish independence.
An independent Scottish Government would become responsible for a ``fair and proportionate'' share of current liabilities, according to a paper issued by the Treasury.
In the event of independence, a new contract would be needed between governments following extensive negotiations.
There would be no change to UK-issued gilts, or bonds. ``Instead, an independent Scotland would need to raise funds in order to reimburse the continuing UK for this share,'' the Treasury paper states.
British ministers have so far refused publicly to ``pre-negotiate'' terms of independence for Scotland.
Voters in Scotland will be asked whether the country should be independent in a referendum on September 18.