RBS reveals Funding for Lending plans

10 September 2012

The Royal Bank of Scotland (RBS) is determined to use a new government lending initiative to provide cost-effective agreements to manufacturing companies.

Earlier this year, the Conservative-Liberal Democrat alliance launched its Funding for Lending Scheme, which permitted banks to loan money with favourable interest rates on the premise that they then passed on these savings to consumers and businesses.

It was hoped this programme - which has a budget of £80 billion ($128 billion) - would help stimulate economic growth in the UK as the country continues to battle against the impact of its double-dip recession.

And RBS has now revealed how it plans to use this money by indicating it will look to target medium-sized manufacturing firms with annual sales of between £25 million and £500 million.

Peter Russell, head of manufacturing at the financier, explained that such organizations are "key in helping the UK grow and export out of recession".

By Tony Aynsley

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