THE HEADLINESTHE ANNOUNCEMENT
Under the CCFF scheme, the Bank of England will buy short term debt in the form of commercial paper, from larger companies. This will support companies that have been affected by a short-term funding squeeze, and allow them to finance its short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms. ELIGIBILITYKEY FACTS Larger companies require an investment grade rating or equivalent, and the Bank of England has confirmed that it will accept;
All non-financial companies that meet the criteria set out in the Bank of England's website are eligible view at https://www.bankof england.co.uk/news/2020/march/the-covid-corporate-financing-facility > WHENLaunched 23 March 2020 WHAT IS COMMERCIAL PAPER?For many the first question may be what is commercial paper? It is commercial paper is an unsecured, short-term debt instrument issued by a company. Commercial paper the Facility will purchase The Facility will purchase sterling-denominated commercial paper, with the following characteristics:
FURTHER INFORMATIONDetailed guidance on the Facility can be found on the Bank of England website which can be viewed at https://www.bankof england.co.uk/news/2020/march/the-covid-corporate-financing-facility > DISCLAIMER - DUE TO THE RAPIDLY CHANGING CIRCUMSTANCES WITH COVID-19, WE ARE UTILISING INFORMATION FROM GOVERNMENT SOURCES, THESE ARE TRUSTED SITES, BUT WE CANNOT BE HELD RESPONSIBLE FOR ANY INCORRECT INFORMATION OBTAINED FROM THEM OR INFORMATION ON LINKS TO THOSE SITES. THE INFORMATION PROVIDED HERE IS GENERIC IN NATURE, AND NOT SPECIFIC TO YOUR CIRCUMSTANCES, YOU SHOULD SEEK PROFESSIONAL ADVICE BEFORE ACTING ON ANY OF THE INFORMATION CONTAINED ON THIS WEBSITE AND IN PARTICULAR IN OUR COVID-19 HUB. PLEASE CONTACT US... WE ARE HERE TO HELP
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AuthorLucinda Matkin - Licensed Insolvency Practitioner & Chartered Accountant Archives
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