The Bank of England has today announced that it hopes to launch two new schemes within its Asset Purchase Faciliity quantitative easing framework to help firms to get finance for working capital. The first scheme, the Secured Commercial Paper Facility (SCP), would be based on the central bank’s exisiting commercial paper facility and add investment-grade assets such as securities backed by trade receivables. The bank said “The facility will be designed to contribute to the Asset Purchase Facility’s objectives of improving liquidity in credit markets that are not finctioning normally.” The second scheme, the Supply Chain Finance Facility (SCF), covers potential means to provide working capital financing to the suppliers of investment-grade companies. The Bank said it was consulting on both proposals, and hoped to launch both facilities soon.
BOE hopes to launch two new schemes within asset purchase facility quantitative ease framework
Source: www.forexlive.com