Eurozone crisis 'may undermine UK business lending'

21 December 2011

The UK government's attempts to boost the amount of business lending occurring across the country could be undermined by the severity of the eurozone debt crisis.

That is the opinion of Bank of England (BoE) policymaker Ben Broadbent, who believes the monetary troubles being encountered by member states of the single currency area are threatening to escalate.

And, during an interview with the London Evening Standard, Mr Broadbent indicated this could lead to the Conservative-Liberal Democrat alliance's efforts to enhance the amount of money passing from lenders to companies being overwhelmed.

In his autumn statement delivered last month, chancellor George Osborne - who is also MP for Tatton - placed major emphasis on implementing more credit easing for firms with revenues below £50 million.

However, the BoE official has warned that even such strong action may not be enough to "offset the realisation of some of the worst risks of the eurozone".

By Asim Shah

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