Government credit easing fund could reach £40bn


Government credit easing fund could reach £40bn

Simon Quicke

With just a day to go before the Chancellor stands up and delivers the Autumn Statement it's already becoming clear that there should be billions of more pounds worth of credit for SMEs on offer.

The credit easing measures that were promised look like totaling up to the £40bn mark with reports emerging over the weekend that more pressure is going to be put on banks to lend more.

By now there are not many parts of the Autumn Statement that will come as a surprise tomorrow with it clear that as well as credit easing billions will be spent on infrastructure projects to get people back to work.

But specifically discussing the credit area George Osborne reveal;ed his approach on the Andrew Marr show yesterday morning indicating the government will provide a guarantee for banks to make loans.

With the government underwriting the loans the interest rates should be more attractive and the potential size of funds available for the National Loan Guarantee Scheme could reach £40bn.

The news was welcomed by the Shadow Chancellor Ed Balls but he pointed out the scheme sounded similar to some already available and the government should have moved sooner to try and ease credit problems for small firms.

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