UK Govt unveils Second Bank Bailout Plan
The UK government in a bid to save its stuttering economy has unveiled its second bank bailout plan. The country is staring at a record level of unemployment numbers and recession. Technically, recession is defined by two successive quarters of negative output. The country saw negative GDP growth in Q3. Its Q4 figures are to be announced on Friday.
Justifying the bailout, Gordon Brown, the British Prime Minister, said the move was required as the overall credit availability is inadequate to support the economy. The bailout, he said, will aim at expanding lending necessary for credit worthy institutions. The Bank of England will give more details of the new facilities on Tuesday.
In October, UK extended a 37 billion pounds lifeline to banks. This was at the height of the global financial crisis and was accompanied by similar such steps by various other countries. The justification for the move at that time too was shoring up of the country’s financial system. Even Gordon Brown had said this will help build financial stability.