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Banks to lend to Business
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Posted in Employers on Jun 15, 2012 by Richard Hayden
The Bank of England and Treasury announced yesterday the launch of a new stimulus package called ‘funding for liquidity’ which is aimed at promoting high street banks to lend to small and medium businesses in order to expand and alleviate financial pressure.
Banks will be able to ‘swap’ assets they do not wish to sell for government bonds for four years and in a second loan the Bank of England will offer a minimum of £5 billion a month to banks who are unable to get cheap funding elsewhere.
In return for this Banks will lend more to businesses and households, it is hoped that small and medium businesses will benefit the most allowing them to expand and develop with the new financial aid.
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Banks will be able to ‘swap’ assets they do not wish to sell for government bonds for four years and in a second loan the Bank of England will offer a minimum of £5 billion a month to banks who are unable to get cheap funding elsewhere.
In return for this Banks will lend more to businesses and households, it is hoped that small and medium businesses will benefit the most allowing them to expand and develop with the new financial aid.
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