Nicholas Soames: To ask the Chancellor of the Exchequer what his policy is on the use of covered bonds to finance infrastructure development; and if he will make a statement. [128707]

Danny Alexander, Chief Secretary to the Treasury: The Government are committed to supporting the development of a strong covered bond market in the UK. The Government conducted a review of the UK's covered bond framework in April 2011 and made a number of changes to the UK regime to make it more transparent and comparable with other European frameworks. These changes come into force on 1 January 2013 and will help banks and building societies make best use of covered bond funding to support lending to the real economy, including financing infrastructure development.

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