UK banks take steps to ease fallout from Carillion collapse

LONDON (Reuters) - Britain's banks are offering overdraft extensions and other emergency measures to help firms hit by the collapse of construction company Carillion, the banking sector's trade body said on Wednesday.

Britain's biggest corporate failure in a decade took place after banks pulled the plug, but UK Finance said lenders were taking steps to ease the impact on small firms affected by the liquidation.

"UK banks and the government are working closely to make sure the impact of the Carillion liquidation on small and medium enterprises in the supply chain is understood and managed in a way that best supports those in need of assistance," UK Finance said in a statement.

"Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track."

(Reporting by Huw Jones; editing by Jason Neely)