The taxpayer is to guarantee loans to foreign companies as part of a £50 billion Treasury drive announced today to kick-start economic growth.
Large infrastructure projects stalled by the credit squeeze will also be able to apply for financial help from the Government. The decision threatens to expose the taxpayer to billions of pounds’ worth of extra debt if the projects collapse.
The Treasury is ready to:
- Underwrite loans to major transport, utilities, energy and telecoms projects in the private sector worth up to £40 billion
- Extend emergency loans of up to £6 billion to public-private projects in hospitals, housing, transport and education
Guarantee loans of up to £5 billion to companies that buy British exports