News
Government plans credit bail out
Andrew Wooden Feb 3 2009, 11:19am
State funded lifeline in the works for businesses hit by tightening credit insurance
The Government is set to announce multi-billion pound plans to bail out thousands of businesses that are being impacted by the reduction or retraction of credit by insurers in the UK.
In the tech sector, some of the largest retailers such as PC World, Currys and Comet have been been threatened by reduced credit insurance in the last few weeks. Big name High Street stores Zavvi and Woolworths recently collapsed due to similar factors.
According to The Times, the Government is planning to offer up to 50 per cent of credit insurance payouts, with a £5 billion cap put on claims as a whole. The relief will apparently be offered to ‘medium risk’ firms that have had cover reduced but not withdrawn.
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