UK offers 10 billion pounds in guarantees for trade credit insurance

06/04/2020

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William Schomberg, Carolyn Cohn | Reuters

Britain’s government provided more support to businesses hit by the coronavirus crisis, saying it would guarantee up to 10 billion pounds ($12.5 billion) in trade credit insurance schemes which protect businesses against defaults or payment delays.

Trade credit insurers had started limiting the cover they provided to businesses in sectors hit hard by the coronavirus pandemic, because of fears of insolvencies, industry sources said.

The state guarantees meant the vast majority of coverage would be maintained, the government said in a statement on Thursday.

They were available on a temporary basis for nine months, backdated to April 1.

Business minister Alok Sharma said the announcement would allow businesses to continue to trade and maintain liquidity in their supply chains.

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