Yahoo Finance Banks told to 'repay the favour' and bail out taxpayers hit by coronavirus pandemic
The Business Secretary has warned banks that it is their turn to "repay the favour" and bail out taxpayers struggling during the coronavirus crisis.
At the Covid-19 press conference on Wednesday, Alok Sharma said the Chancellor, the Bank of England and the Financial Conduct Authority have written to chief executives of UK banks.
He said they had urged them to make sure the benefits of the Covid Business Interruption Loan Scheme are “passed through to businesses and consumers".
Firms around the UK have spoken of their frustration after being either refused loans or left unable to speak to banks over the phone.
Speaking in Downing Street, Mr Sharma said the Government had bailed the banks out in the financial crash of 2008 and it was time to "repay the favour" to taxpayers.
“It would be completely unacceptable if any banks were unfairly refusing funds to good business in financial difficulty,” Mr Sharma warned.
“Just as the taxpayer stepped in to help the banks back in 2008, we will work with the banks to do everything they can to repay that favour and support the businesses and people in their time of need.”
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