23/04/2009 - £5bn more trade credit insurance
Chancellor Alistair Darling has announced up to £5 billion of additional trade credit insurance for businesses which have seen cover levels cut.
In his Budget speech, Mr Darling said the scheme aims to support businesses which have seen their level of trade credit insurance cover reduced.
After May companies in the UK will be able to buy six months "top up" insurance from the Government if credit limits on UK customers are reduced.
Business secretary Lord Mandelson said: "This scheme will provide a much-needed breathing space for businesses suffering as a result of the reduction in trade credit insurance.
"We will not prop up bad businesses or take unacceptably high risks, but will provide targeted support to address specific challenges that businesses are facing and help maintain supply chains."
The move comes amid growing concern that more businesses are being left unpaid for goods supplied to companies which have gone bust.
Nick Starling, of the Association of British Insurers, said: "The ABI and trade credit insurers have worked closely with the Government to make this scheme possible, and our constructive dialogue on how insurers can help to provide that support will continue."
Copyright © Press Association 2009
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