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Rbs May Back Out Of Government Lending Plan

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http://business.timesonline.co.uk/tol/busi...icle6729780.ece

Royal Bank of Scotland is considering backing out of a government scheme to lend up to £1 billion to cash-starved companies.

The Department of Energy and Climate Change (DECC) announced proposals yesterday for RBS and Lloyds to boost lending to stricken wind-farm developers, which have been hit hard by the credit crunch, which has dried up the flow of funding just as the Government has called for a vast expansion of renewable electricity.

The DECC said that RBS and Lloyds, which are 70 per cent and 43.5 per cent owned by the Government, and BNP Paribas Fortis, the French-owned bank, were collaborating with the European Investment Bank (EIB) to lend the cash to onshore wind-farm developers over the next three years.

The banks expressed surprise at the announcement, issued without accompanying statements from any of the banks concerned. A spokeswoman for RBS said that nothing had been signed and that it would be “at least two months†before a final decision was taken on whether to proceed with the scheme.

The EIB, the long-term funding arm of the European Union, said that it was currently “only doing due diligence†on the scheme. A spokeswoman said that a proposal would not be put to the board of the EIB, owned by the 27 EU member states, until “late autumnâ€.

The EIB also appeared to reject a Government claim that the £1 billion would form part of an “additional £4 billion of EIB lending to support UK energy projects†unveiled in the Budget. It said that, while it was always interested in new projects, there was no guarantee that the money would be invested in the UK.

BNP Paribas Fortis said that it was “looking into†the announcement while Lloyds failed to return calls.

The Government said that the banks had been “teamed up with the EIB†after mounting Treasury pressure on lenders to boost business lending to kickstart the economy.

A DECC spokesman said that the money should be available by October.

You really couldn't make this up. :blink::blink:

Typical Labour make an announcement and move on because hey where the do something party.

Darling seeks more bank lending from yesterday.

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£1billion lending to businesses, eh ?

Remind me, how much did the banks lend for mortgages last month ?

While the property market "binges", the business world starves.

Maybe the government should give up on trying to prop up the property market, and concentrate on helping our companies to make some real money.

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£1billion lending to businesses, eh ?

Remind me, how much did the banks lend for mortgages last month ?

While the property market "binges", the business world starves.

Maybe the government should give up on trying to prop up the property market, and concentrate on helping our companies to make some real money.

Yes I've wondered how much demand for property loans crowds out business lending. However I actually think the banks have largely forgotten how to appraise and lend properly to businesses.

Then you have all the government borrowing.

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£1billion lending to businesses, eh ?

Remind me, how much did the banks lend for mortgages last month ?

While the property market "binges", the business world starves.

Maybe the government should give up on trying to prop up the property market, and concentrate on helping our companies to make some real money.

Yes but what in other market can you make £50k a year doing nothing??? :ph34r:

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it's the same on all lending though i'd imagine - property or business. the contract part made me :lol:

so when they raped all the future generations did the conversation go a little like this:

darling: now, we know you are in a spot of, well, bother.

mr banker: yes.

darling: i think we can help you out and rebuild by getting the numpties to stump up.

mr b: sounds good.

darling: but to make it credible you must lend them their money.

mr b: no problem.

darling: you are going to lend it aren't you?

mr b: yes, of course.

darling: ok then, here's the money (*puts suitcase on table*) - i'll get a contract drawn up.

mr b: yeh, stick it in the post.

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Yes but what in other market can you make £50k a year doing nothing??? :ph34r:

Precisely.

When I saw Darling on the news yesterday, I wondered what was said at the meeting with the banks........

"Now look, you`ve been very naughty boys. I`ve told them that I`m here to get more help for businesses....... but what I really want is for you to keep your mortgage rates down. Oh, and if you be as so kind to allow more 5+ x salary lending, Gordon would be most grateful. Thanks chaps."

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Maybe the government should give up on trying to prop up the property market, and concentrate on helping our companies to make some real money.

they wont give that up until after the election is lost, as for supporting businesses well many of them have only survived while the credit binge was on and frankly have no chance in a real world so to some significant extent the banks have a duty not to lend to the dreamers and let them fail now before they cost taxpayers + savers even more

Edited by loginandtonic

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get credit flowing.

the mantra of a regime on it's last legs. Wonder what darlings got lined up for after the election ? ali's skip hire ?

'i used to be the chancellor but now i do the cheapest skips in all of edinburgh'.

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Precisely.

When I saw Darling on the news yesterday, I wondered what was said at the meeting with the banks........

"Now look, you`ve been very naughty boys. I`ve told them that I`m here to get more help for businesses....... but what I really want is for you to keep your mortgage rates down. Oh, and if you be as so kind to allow more 5+ x salary lending, Gordon would be most grateful. Thanks chaps."

I thought it went more like, Alistair made the tea and the bankers told him to say he will give their books a damn good going over. On the way out they all patted him on the head.

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Guest KingCharles1st
Yes I've wondered how much demand for property loans crowds out business lending. However I actually think the banks have largely forgotten how to appraise and lend properly to businesses.

Then you have all the government borrowing.

You are absolutely right

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If businesses were not so highly taxed they would not need so much borrowing.

You can be certain that in 90% of cases companies biggest creditors will be HMRC.

As stated above that is why Darling wants to ease the credit.

And while I am in rant mode, what kind of nutcase economics is it that taxes a business for taking people off the unemployment register.

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