Lender of last resort

A lender of last resort is an institution willing to lend you money when no one else will.

  • For U.K. Banks the lender of last resort is the government.
  • For the U.K. Government the lender of last resort is the International Monetary Fund (IMF).

Usually, there are strict conditions applied to the load. For example during 1976 the IMF would only lend the U.K. Government money once it had committed to reduce spending and thus reduce the national debt.

See also:-

Retrieved from "http://www.housepricecrash.co.uk/wiki/Lender_of_last_resort"