Sharon Bowles MEP comments on Funding for Lending Scheme extension

Commenting on today's announcement that the Bank of England will extend the Funding for Lending Scheme until 2015, Sharon Bowes MEP* said:

"The extension of the Funding for Lending Scheme is welcome, but 2015 is not a long time horizon.

"I am sure that lower interest rates are welcome, no matter for how long, and this helps in the struggle for survival. However, if businesses are to plan for expansion, especially in the manufacturing sector, longer loans are needed. That kind of expansion cannot be planned on 'hire and fire'. Two years is not long enough for spreading capital repayment, business needs at least five years to establish confidence.

"Just like it being a good thing that UK sovereign debt is not on short term roll-overs, compared with some of our EU neighbours, the same applies for business. This is no time for being feint hearted; now let us have the growth plan on top of the survival plan."

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