Bank of England to finance UK government Covid-19 crisis spending
by Larry Elliott from on (#51XQ8)
With lockdown likely to be extended, Treasury can draw on billions in extra funds to support cashflow
The Treasury has announced it is to extend its overdraft facility at the Bank of England in a fresh sign of the mounting financial pressure on the government caused by the Covid-19-enforced lockdown of the economy.
Amid growing speculation that the quarantining will be extended next week, the Treasury said it needed extra firepower to support its cashflow and to ensure financial markets ran smoothly.
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