Division of UK assets and liabilities between an independent Scotland and the rest of the UK (“rUK”) following a YES vote in the September 18th referendum continues to provoke heated discussion with just months to the big event.
Rod MacLeod of Tods Murray LLP says in his article, that
“in theory, an independent Scotland could walk away from its share of UK debts and liabilities if it felt that it had not received a fair share of UK assets (sharing of institutions or otherwise) as part of any separation agreement,” but adds –
“whether it would be wise to do so is another matter….Given that an independent Scotland would need to borrow on the international money markets from day one of independence, any refusal to pay its share of UK debt (justified or not) could damage Scotland’s international credit rating and lead to higher borrowing costs for the Scottish state.”
Whose Central Bank is it Anyway? by Rod MacLeod appears in The Edinburgh Law Review, Volume 18.2, (DOI 10.3366/elr.2014.0207) and it’s FREE online.