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LONDON, June 4 (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.
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.
"This reinsurance scheme is an important step as we
carefully set about firing up our economy as we emerge from the
pandemic," he said.
Business groups welcomed the announcement.
"To help the economy get up and running again, maintaining
confidence in supply chains is crucial, and we are encouraged to
see this come as the product of collaboration between government
and industry," Allie Renison, head of trade policy at the
Institute of Directors, said.
Trade credit insurance underwrites an estimated 350 billion
pounds of economic activity of more than 630,000 businesses in
Britain each year, the government said in its statement.
($1 = 0.7974 pounds)
(Writing by William Schomberg; Editing by Andrew Heavens)