CREDIT MUST BE RELEASED IN NEW BAIL OUT FOR UK BANKS.

CREDIT MUST BE RELEASED IN NEW BAIL OUT FOR UK BANKS.

SNP ASKS QUESTIONS, NEW BAIL OUT FOR UK BANKS.

Commenting on the announcement of the UK Government’s second multi-billion pound package of measures to encourage banks to lend to individuals and businesses, SNP Westminster Treasury spokesperson, Stewart Hosie MP, said:

"Obviously I welcome the recognition that credit has not been flowing, particularly to businesses, and that the UK Government has finally started to address this issue. However, I question whether the failure of the previous bail-out package leaves the UK government with any credibility this time around.

"It was completely contradictory for the UK Government to insist on banks strengthening their balance sheets while also demanding that they continued to lend. This plan must not simply ensure that credit is available – but also ensure that it is priced at a level businesses and families can afford.

"The Government cannot afford to get this wrong again - too many jobs are at stake.

”Only last October the prime minister said his first banking rescue package would provide a ‘rock of stability’, but now its clear Brown’s bail-out was built on sand.

“In spite of all the leaks over the weekend, the number of unanswered questions and lack of detail, which has become a trademark of Labour’s economic strategy, confirms our reasons to be sceptical this time.

”Just how does the Treasury intend to value the level of toxic bank debt, how long will guarantees run for and who will this scheme be available too?

“As for guaranteeing corporate lending, we need to know details about the level of fees, the types of loans guaranteed and the risks the government is willing to take with tax payers money.”