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Alexander: independent Scotland would need Wonga-like bonds

Alexander: independent Scotland would need Wonga-like bonds

Chief secretary to the Treasury Danny Alexander has slammed the Scottish National Party’s threat to default on its share of UK debt.

The threat was made in relation to a currency union not achieved in the event of independence.   

At a parliamentary session for the Treasury to answer MP questions, Iain Stewart, Conservative MP for Milton Keynes South, asked Alexander (pictured) to comment on the ‘astonishing claim’ by Scotland’s first minister Alex Salmond.

Alexander, who is a Liberal Democrat MP for Inverness, Nairn, Badenoch & Strathspey, criticised the plans and said it would lead an independent Scottish government to use the bond market version of Wonga which would have a ‘catastrophic effect’ for the people of Scotland.

‘Scotland’s plan to renege on its share of debt if it becomes independent is simply not credible,’ he said. ‘[It will have a] catastrophic effect on the people of Scotland: mortgage rates, credit card bills will go up.

‘The Scottish government would have to resort to the bond market equivalent of Wonga to raise money to pay for public services. To default on the debt [would be] to punish every Scot for Alex Salmond’s failure to think through his currency plan B properly.’

In a recent televised debate with Alistair Darling, leader of the No campaign, Salmond said he had three plan Bs in the event there being no currency union.

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