UK Leaders Commend Banks for Supporting Businesses and Customers Affected by COVID-19

The HM Treasury, Bank of England ("BoE") and the Financial Conduct Authority ("FCA") commended banks for their services to customers and businesses affected by the COVID-19 outbreak.

In a letter addressed to banking institutions, government officials highlighted recent actions implemented by the United Kingdom on March 17, 2020, to mitigate the effects of COVID-19 on the economy. Among other initiatives, the government officials outlined:

• the Coronavirus Business Interruption Loan Scheme ("CBILS") intended to aid small businesses that are experiencing decreased revenues and disruptions in cash flows by (i) providing facilities up to £5 million, (ii) supporting varying business finance products (e.g., term loans, overdrafts, invoice finance, and asset finance), and (iii) offering lenders a government-backed guarantee; and

• the COVID-19 Corporate Financing Facility ("CCFF") that allows the BoE to buy short-term debt.

The officials commended the actions taken by banks to support businesses and consumers by (i) helping to implement CCFF and CBILS, (ii) providing greater overdrafts, and (iii) offering repayment relief for loan or mortgage repayments.