UK's Treasury to continue working with BoE on bond programme-Hunt

LONDON (Reuters) - British finance minister Jeremy Hunt said on Friday that the government would carry on working with the Bank of England over the central bank's sales of its massive bond-buying purchases, which represent a big cost for the government.

"HM Treasury and Bank of England officials will continue to monitor the APF's (Asset Purchase Facility's) implementation and risks to the Exchequer," Hunt said in an exchange of letters with BoE Governor Andrew Bailey.

"Any future cash transfers will be handled under the terms of the indemnity as has been the case to date."

Hunt agreed to reduce the authorised maximum size of the APF to 751 billion pounds ($918 billion) under an update to the programme which reflects the BoE's bond sales.

($1 = 0.8178 pounds)

(Reporting by Kylie MacLellan; Writing by William Schomberg, Editing by William James)