United King­dom

RISKAFRICA Magazine - - INTERNATIONAL NEWS -

Busi­ness bank on the cards for Bri­tain

Bri­tish busi­ness min­is­ter Vince Ca­ble has launched plans to in­ject £1 bil­lion ($1.6 bil­lion) into a new busi­ness bank in a bid to cut bor­row­ing costs for firms. Ca­ble an­nounced the ini­tia­tive at the an­nual con­fer­ence of ju­nior coali­tion part­ners, the Lib­eral Democrats, re­ported Fi­nance24.

“We need a Bri­tish busi­ness bank with a clean bal­ance sheet and a man­date to ex­pand lend­ing rapidly and we are now go­ing to get it,” Ca­ble said at the con­fer­ence in Brighton on the coast of south­east Eng­land. “Along­side the pri­vate sec­tor, the bank will get the mar­ket lend­ing to man­u­fac­tur­ers, ex­porters and growth com­pa­nies that so des­per­ately need sup­port.”

Ca­ble says the new whole­sale bank will open up about £10 bil­lion ($16 bil­lion) of fi­nance for small and medium-sized Bri­tish com­pa­nies that are strug­gling to get ac­cess to credit. The new bank will lend the cash via ex­ist­ing fi­nan­cial in­sti­tu­tions and start within 12 to 18 months. It will be funded from ex­ist­ing bud­gets and not re­quire any ad­di­tional state bor­row­ing. The Con­ser­va­tive-led govern­ment hopes that it will at­tract more than £1 bil­lion of cap­i­tal from the pri­vate sec­tor.

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