Business InsiderTop News

UK’s Sunak authorises bailout plan to rescue strategically important companies: FT

imageStock Markets4 hours ago (May 24, 2020 05:50PM ET)

(C) Reuters. FILE PHOTO: Britain’s Chancellor of the Exchequer Rishi Sunak attends a news conference on the ongoing situation with the coronavirus outbreak

(Reuters) – British Finance Minister Rishi Sunak has authorised a bailout plan to rescue companies that are seen as strategically important, with the state expected to buy stakes in crucial businesses that are facing acute financial problems, the Financial Times newspaper reported https://on.ft.com/3eeNJSN.

Under the plan, which is named ‘Project Birch’, the finance minister has raised the UK Treasury’s capacity to handle bespoke bailouts of “viable companies which have exhausted all options”, including government loan schemes, the newspaper reported.

The Treasury told the newspaper it will try to save those companies whose failure will “disproportionately harm the economy”.

Companies from the steel, aviation and aerospace sectors are among those facing acute problems and the offer of the Treasury will apply across all sectors of the economy, according to the newspaper.

Sunak’s allies cited by FT said the Treasury will not initially look at taking equity stakes in companies that are struggling, with the preferred option being extension of loans.

However, the Treasury told the newspaper that it may consider support on a “last resort basis” in “exceptional circumstances.

“In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, we may consider support on a ‘last resort’ basis”, the Treasury said in a statement quoted by FT.

It did not immediately respond to a Reuters request for comment late on Sunday.

UK’s Sunak authorises bailout plan to rescue strategically important companies: FT

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close