Motor and retail finance and leasing could be
included in the latest credit easing initiative launched by UK
Chancellor George Osborne.

Speaking alongside the Governor of the Bank of
England, Sir Mervyn King, Osborne announced a further credit scheme
in reaction to the continuing European “debt storm” at the annual
Lord Mayor’s Mansion House dinner on 14 June.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

A spokesperson for the Treasury told
sister-publication Leasing Life while details of the
scheme were yet to be finalised, the programme would be open
to all kinds of lending to the real economy so long as the discount
is passed on to businesses.

Through the “funding for lending” scheme, a
joint programme between the Treasury and the BoE, the UK’s central
bank will make funding available to banks in the form of loans
lent below market value.

Similar to the
National Loan Guarantee Scheme (NLGS) launched by the
Chancellor in his March Budget, the discount loans will be given on
the condition the reduced rate is passed on to businesses.

The programme was described by King as being
in tandem with quantitative easing, which the BoE announced it
would not increase at its monthly policy meeting the previous
week.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

George Osborne described the current crisis as
perhaps the most difficult faced outside war time and said “things
could still get worse before they get better”.

The latest plan, he said, was designed “to
inject new confidence into our financial system and support the
flow of credit to where it is needed in the real economy.”

grant.collinson@vrlfinancialnews.com