The government’s coronavirus loan schemes have now lent nearly £48bn to businesses, with the bounce back loan (BBL) programme, under which the government backs 100% of loans up to £50,000 leaving the government at risk of being “saddled with the debts of insolvent small companies,” according to City AM. This comes as coronavirus support programmes such as the job retention scheme, which pays the wages of workers who otherwise might lose their jobs, are gradually withdrawn by the government. Meanwhile finance body The City UK is predicting a wave of defaults on some £35bn of corporate debt taken on during the crisis.
Read more: City AM