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Two Million Cut Adrift

13 Oct 2009

"Our members are telling us that the banks are dragging their heels and driving up prices"

The Forum of Private Business (FPB) is urging the European Commission not to force the UK's part-nationalised banks to abandon more than two million of their small business customers.
 
According to reports, the Commission is preparing a ruling under which Lloyds TSB and the Royal Bank of Scotland (RBS) will each be required to shed 10% of the small businesses on their books in order to avoid contravening its ‘state aid rules'. The final decision will be made by the EU's competition commissioner, Neelie Kroes.
 
"Our members are telling us that the banks are dragging their heels and driving up prices when it comes to lending to small businesses," said the FPB's Policy representative, Matt Goodman.

"This is despite the government bailing them out at record levels and underwriting lending via the Enterprise Finance Guarantee (EFG) scheme. But it would not be acceptable to allow two million small businesses to be cut adrift in retribution for contravening European State Aid Rules. The European Commission must demonstrate understanding for businesses on the ground as well as the financial markets."

News source: Courtesy of Glass & Glazing Magazine