LONDON (Reuters): Britain will pay back part of the outstanding debt used to fund World War One next year, when it redeems government bonds first issued almost 90 years ago by then-finance minister Winston Churchill. The finance ministry said on Friday that it would redeem 218 million pounds ($348 million) of 4.0 percent consols - a rare type of bond with no maturity date - on Feb. 1 next year, to be funded by issuing new debt.

This is the first time this type of gilt has been redeemed since the late 1940s - in part because until recently it required lower interest payments than similar new debt.