in Order to support the business during the coronakrisen working for the british government on a plan to bring the companies billions of pounds.
Specifically, the government will buy shares and thereby adding money to distressed companies within the aviation sector, writes the Financial Times.
According to the newspaper, the plan, the government buys a lot of shares in companies such as British Airways. Since the shares will be sold back to private investors, when the situation is, says three unnamed sources of the newspaper.
Two of the sources tell that the government plans this measure, after the banks have warned that the preliminary stimulus to business is not enough to save the companies from having to turn the key on.
- There are specific industries where there will be a need for a capital injection in exchange for shares, says the sources to the Financial Times.
already, the uk government has launched a big stimulus program, which would provide companies with loan guarantees for hundreds of billions of pounds.
But, as sources point out, so does the current situation make it hard for businesses to be able to borrow without running into problems.
- The problem with loans is that if you give a loan to a company without revenue, so the financial statements will say that it is impaired.
- For the businesses that are closed because of the virus, will a loan in many ways not work, say the sources of the newspaper.
The british plan follows, after us politicians have already suggested the purchase of shares in us airlines, to give them money.
because of coronavirusset is no longer just as many who travel by plane, and it has hit among the other airlines and travel companies hard.