David Cameron warns that the Government risks defaulting on its debt obligations

The Telegraph is reporting remarks made by David Cameron at the RSA this morning in which the party leader voiced his concern that the Government might not be able to pay back the money it is borrowing from international investors.

Here's what he had to say:

"You can get to a level of government debt where, not that it becomes certain that people will cease to lend you the money, but you start running the risk of them demanding higher premia, higher interest rates. Or you run the risk of not being able to meet your obligations."

“I’m not predicting that it’s going to happen, but as Government borrowing goes up and up and up, you start running that risk. I’m not saying it’s going to happen, but the Government, with the levels of indebtedness they have, they are running those risks.”

Jonathan Isaby