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5/As things stand, the government’s 80% guarantee is to the lender – not the borrower. Anyone who takes out these loans – whose interest rate the government has not capped – will be 100% liable to pay them back albeit with a 12 month DEFERALL – not HOLIDAY.
So what can be done?
So what can be done?
6/ Here are three ideas I have heard floated.
1.Don’t defer, forgive.
Banks should permanently forego interest payments for the period of April to June.
UK banks were recipient of hundreds of billions of financial support 11 years ago. Analysts at AJ Bell estimate...
1.Don’t defer, forgive.
Banks should permanently forego interest payments for the period of April to June.
UK banks were recipient of hundreds of billions of financial support 11 years ago. Analysts at AJ Bell estimate...
6/the bill for interest on personal and company loans is roughly £28 bn a quarter. The government has ordered banks to halt divs for rest of year. That = additional capital of roughly 15 bn this year + Bof Es decision to relax capital rules - in short They could afford it....
7/ banks are able to borrow at close to 0.1%, and 80% of these loans will be guaranteed - some banks are charging in excess of 8% for loans that, as the government has already said, could only be taken by businesses that were viable on the eve of the crisis..
