New plan to boost credit market

News Article - 17 April 2008
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The government has unveiled a new proposal that could strengthen UK financial markets and help them weather the current credit crunch.

Under the plans, the Bank of England would provide banks with a new lending programme that would enable them to start lending again by granting government bonds in exchange for securities backed by UK mortgages.

The proposal has won the backing of the Treasury and has been welcomed by economists, who believe that it could rejuvenate Britain's lending market.

Similar moves have been made in the US to boost productivity, increase the liquidity of money markets and ensure that consumers and businesses can access finance more easily.

Prime minister Gordon Brown is meeting with the chairman of the US Federal Reserve, Ben Bernanke, this week to discuss current economic uncertainty.

Companies concerned about the impacts of the credit squeeze on their business should invest in financial analysis software in order to manage their accounts more effectively.

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