U.K. lenders borrow £185B through BoE's emergency facility

02/4/2009 | Financial Times (free content)

The emergency liquidity scheme established by the Bank of England in March was intended as a temporary crutch, with demand expected to reach roughly £50 billion, but U.K. banks and building societies have tapped the facility for £185 billion. The facility was also expected to be open for six months but was extended as the financial crisis worsened. "The special liquidity scheme has served its purpose in relation to the overhang of illiquid assets on balance sheets up to the end of 2007," the bank said. "But financing conditions have remained difficult ... and therefore further measures have been introduced."

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