8:15 am, January 19, 2009
BANKS will be forced to lend more to customers and businesses, in return for yet more Government aid.
It is hoped car dealers will be among those benefitting this time round, as both private and business customers find credit easier to access.
The Government package is helping banks by insuring against banks losing yet more from so-called ‘toxic debt’.
Banks will have to pay for this insurance, but it will mean they are freer to recommence lending.
Indeed, Chancellor Alistair Darling is, this time, ensuring the banks are legally bound to do so.
RBS for one, says Darling, has agreed to lend £6 billion more to customers and businesses. This is in the same day that it announces record full-year 2008 losses, expected to be between £7 billion and £8 billion.
Car Dealer awaits the industry response to the Government’s measures with interest.
