An overview of the Government initiatives to support businesses through the coronavirus pandemic.
Documents to download
-
Interest rate swaps on business loans (605 KB, PDF)
Business loans, made primarily to smnall businesses, with attached interest rate ‘protection’ or ‘hedges’ proved to be very expensive compared to the rest of the market. This is largely due to the unexpectedly steep fall in interest rates following the financial crisis. Small businesses complained that they were sold complex products which they did not fully understand, or worse, that they were forced to agree to the interest rate conditions in order to get a loan at all.
A redress scheme was organised by the Financial Services Authority in agreement with the main lenders. Although it was criticised as being too lengthy and complex for many small firms, it has resulted in compensation payments in excess of £2million. It is now largely ended.
Documents to download
-
Interest rate swaps on business loans (605 KB, PDF)
Related posts
-
-
An overview of how business interruption insurance policies have been interpreted in the context of the coronavirus pandemic.
-
The European Investment Bank lends to projects that contribute to growth and employment within Europe. This briefing gives a short overview of the Bank's membership and operation, and its future relationship with the UK.
