Scotland gains right to issue bonds

Scotland will be granted the power to issue its own bonds from next year, the British government said today, with seven months to go in the independence referendum campaign.
From 2015, the devolved Scottish government will be able to borrow up to USD 3.7 billion on capital markets to invest in hospitals, roads and other capital projects, Britain's Treasury said in a statement.
The announcement comes as British Prime Minister David Cameron's Conservative-Liberal Democrat coalition steps up its campaign for Scotland to remain within the United Kingdom.
"This is an historic moment for Scotland, a country where the economy is growing with the government's long term economic plan," said Conservative finance minister George Osborne.

"Being able to issue its own bonds gives Scotland new powers and new responsibility, within the security of the UK," he said, adding it was "further evidence of why being part of the UK gives Scotland the best of both worlds".
Scots head to the polls on September 18 in a historic referendum that could result in scrapping Scotland's 300-year political union with England.

The Scottish National Party (SNP), which forms Scotland's devolved government, is campaigning for a "yes" vote to independence while the Conservatives, the Lib Dems and the Labour main opposition are in the "no" camp.
Over the weekend, European Commission president Jose Manuel Barroso warned it would be "difficult, if not impossible" for an independent Scotland to join the EU.

However, Scottish First Minister Alex Salmond -- the SNP leader -- countered on Monday that the European Union would find a way to keep Scotland within the bloc should it vote to leave the UK.
Osborne meanwhile warned last week that an independent Scotland would have to leave the pound, adding there was no legal reason why the currency should be formally shared.