Arab Today, arab today britain unveils stimulus to parry eurozone threat
Last Updated : GMT 06:40:30
Arab Today, arab today
Arab Today, arab today

Britain unveils stimulus to parry eurozone threat

Arab Today, arab today

Arab Today, arab today Britain unveils stimulus to parry eurozone threat

London - AFP

Britain has stepped up its action against the eurozone crisis by agreeing to offer billions of pounds in cheap loans to British banks, in co-ordinated action that took markets by surprise. The government and Bank of England (BoE) announced the surprise plan late Thursday in London in a bid to force commercial banks -- which are reluctant to lend amid the threat of a Greek exit from the eurozone -- to lend to businesses struggling amid Britain\'s recession. But the move prompted fresh warnings from the main opposition Labour party that Britain\'s austerity drive and current stimulus projects were not working. The action plan comes in addition to the BoE\'s Quantitative Easing project policy, under which it has injected £325 billion (400 billion euros, $505 billion), of new money into the British economy since 2009. \"UK policymakers last night announced that they are significantly stepping up their efforts to try to cushion the UK economy from the effects of the eurozone crisis,\" said Vicky Redwood, chief UK economist at the Capital Economics consultancy. \"The measures should help to ease strains in the banking sector, but there are question marks over whether they will actually result in higher lending to the private sector,\" she added on Friday. Bank of England Governor Mervyn King said in a speech on Thursday to coincide with the announcement of the fresh stimulus measures that the eurozone crisis had \"grown to cast a long shadow over\" Britain\'s own economic recovery. King added that \"exceptional circumstances create a case for a temporary bank funding scheme to bridge to calmer times.\" Britain, which is a not a member of the single currency bloc, relies on the eurozone for much of its trade. Finance minister George Osborne, speaking alongside King, said a lack of credit was \"damaging businesses and costing jobs.\" He added: \"The government -- with the help of the Bank of England -- will not stand on the sidelines and do nothing as the storm gathers.\" The eurozone is in turmoil as debt-wracked Greece struggles to remain part of the bloc and amid fears that Spain\'s government may follow Spanish banks in requesting a huge financial bailout. Despite possessing a massive public deficit of its own, the British government is enjoying unusually low borrowing costs as investors see its bonds as a safe haven from the eurozone crisis. King revealed that the BoE would activate measures announced in December which it is hoped would provide short-term liquidity of at least £5.0 billion per month to banks. The first auction under the so-called Extended Collateral Term Repo (ECTR) Facility would take place on Wednesday, the BoE said. In addition, a \"funding for lending\" scheme due to begin in a few weeks -- and lasting several years -- would offer cheap loans to banks in exchange for a wide range of collateral and on the condition that they increased lending to small businesses. Reports said that about £80 billion would be made available under the \"funding for lending\" scheme. \"The BoE\'s latest plans are a welcome development as it helps by-pass a damaged ... mechanism -- where banks are deleveraging their balance sheets to repair the damage from over-exposure to the eurozone as well as having to raise capital,\" said Neil MacKinnon, an economist at VTB Capital financial group. \"The problem is that the excess liquidity created by QE is staying in the banking system and not being recycled in to the real economy through an increase in bank lending. \"Small and medium sized businesses have well-documented problems in accessing credit and in situations where they do access credit, it is usually at an expensive price,\" MacKinnon told AFP. Labour\'s finance spokesman Ed Balls insisted that the proposals \"do not go far enough,\" adding that the new action plan \"is a significant admission that the government\'s existing policies have failed.\" Britain escaped a deep downturn in late 2009 but fell back into recession in the final quarter of 2011 on the back of state austerity measures and the eurozone debt crisis. Britain\'s Conservative-Liberal Democrat coalition administration has slashed public spending and hiked taxes since it won power in 2010, after inheriting a record deficit from the previous Labour government.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today britain unveils stimulus to parry eurozone threat Arab Today, arab today britain unveils stimulus to parry eurozone threat

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 16:05 2017 Sunday ,19 February

Trudeau calls for wider social benefit from economy

GMT 05:57 2017 Sunday ,19 February

How do you say déjà vu in Greek?

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday