8 October 2008
News that the government is to provide a £500 billion rescue package for the UK's banking system has been welcomed by the business community.
The re-structuring plan comes in three parts. £50 billion has been set aside to help the banks rebuild their capital reserves. Short-term loans totaling £200 billion are being made available in an effort to boost liquidity levels. Another £250 billion will be used as loan guarantees to encourage banks to begin lending to each other again.
John Cridland, CBI Deputy Director-General, said: "We welcome today's essential measures which strengthen the British banking system, and will help provide financial stability for the country.
"British business is facing a freezing of bank finance. Many companies need this action to keep investment and working capital flowing.
Content by: Business Made Simple
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