50bn Lending Boost - Financial Services Recruitment - Emu Consulting

The Bank of England has announced details of a plan to help prevent the credit crisis causing more damage to the UK banking system and economy.

Banks will be able to swap potentially risky debts for 50bn of secure government bonds to enable them to operate during the credit squeeze.

The swap will be for a period of one year and may be renewed for a total of three years.

It will only apply to mortgage debts on banks' books at the end of 2007 and the swaps cannot be used to finance new lending.