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UK govt pledges $1.6bn to state-backed bank

Up to £1 billion ($1.6 billion) worth of government money will be provided to make sure the UK's new state-backed business bank is a success.

That is according to business secretary Vince Cable, who has pledged that the coalition will make a significant contribution to the finding of the body in order to ease more fluidity into the British economy.

During his speech at the Liberal Democrats' annual conference in Brighton, England today (24 September), Mr Cable explained that he is still working alongside chancellor George Osborne to finalize the establishment of the financier.

However, he revealed it will exist thanks to the combination of up to £1 billion from the administration and a "larger private sector contribution".

This is then expected to provide as much as £10 billion in support for small and medium-sized enterprises.

"We need a new British Business Bank with a clean balance sheet and an ability to expand lending rapidly to the manufacturers, exporters and high growth companies that power our economy," the minister added.

By Asim Shah