Apr 21 – The Bank of England is offering to swap secure government bonds for a range of riskier bank assets such as mortgages to improve liquidity in the banking system.
The move by Britain’s central bank aims to support banks so they can start lending again.
The global credit crunch that has followed a sharp downturn in the U.S. subprime mortgage market has left British banks wary of lending to each other or offering new home loans – despite three interest rate cuts by the BoE since December.
Stefanie McIntyre reports.
BOE offer $100 billion dollar swap plan
correct the statements
The Bank of England has unvaled a plan to help British banks start lending again.
The bank has raised its interest rate 3 times since December.
Gordon Brown wants to protect banks in the face of economic turn down.
The government must make sure people can borrow money to sell houses.
Analysts say the BOE plan will have a great impact.
They are optimistic about the plan.
The swop offer is a last resort for banks in trouble.
The offer is very generous.
The banks must put up collateral for a secured loan.Banks will be happy to do this.
The Bank of England has acted in a timely fashion.
The U.S. launched a $200 million programme last month.
