Sunday, December 5, 2010

UK automotive industry ' set for loan guarantee '

The beleaguered British automotive industry could be set to a cash injection to get, with plans for loans would be backed up by the taxpayer.

According to a report in the Daily Telegraph the Government on conservative calls for a large-scale ?50 billion loan scheme refuse set is, and instead focuses on supporting small business.

However, the paper reports that Ministers are "almost certainly" a special case for the automotive industry to meet, which repeated for financial assistance the U.S. auto industry Bail-Out similarly encouraged.

The paper says that business Secretary General Mr Mandelson is considering providing guarantees for banks that were short-term loans to car manufacturers to offer in free fall in 2008.

Conservative leader David Cameron told BBC Radio 4's today programme that Britain was a crisis "Debt" and the answer could not be more borrowing.

"There are a slew of rebalancing must take place," he added.

"Our economy is awfully closely based been."


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