Banks offer £225m to Carillion victims

BANKS that loaned cash to Carillion have set up a £225m lifeline to help its suppliers.

HSBC, Barclays and RBS say they will waive fees and suspend loan repayments for clients owed money by bust Carillion which is now struggling to pay its own bills.

It is estimated the construction company owed up to 30,000 businesses around £1bn when it collapsed under its debts on Monday.

HSBC yesterday opened a £100m fund to help waive fees on debt and suspend loan repayments. RBS said it was making £75m available to increase overdraft limits by 20pc for three months and suspend loan payments for three months, without fees.

Lloyds announced £50m to offer overdrafts without arrangement fees, and suspend loan payments for six months. The three banks, along with Barclays and Santander, lent £140m to Carillion during its final few months.