Funding for Lending scheme details set to be unveiled

13 July 2012

Further information about a new initiative from the UK government and the Bank of England (BoE) designed to boost lending is scheduled to be unveiled later today (13 July).

The creation of the Funding for Lending programme was first announced earlier this year and will involve around £80 billion ($123 billion) being offered to financiers on the proviso that they pass the cash on to businesses and consumers in cost-effective mortgages and loans.

This forms part of the Conservative-Liberal Democrat alliance and BoE's plan to stimulate the economy by implementing a raft of measures to inject more liquidity into the country's financial system.

It is hoped the Funding for Lending scheme will incentivize banks to loan out more money, as it will permit firms to benefit from loans at low interest rates over a timeframe of four years.

And more details regarding the programme will be released today as the government looks to speed up the process of economic recovery.

By Gary Cooper

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