What *are* all these emergency coronavirus business loan schemes?
And can we trust their integrity?
An @indypremium explainer 👇
independent.co.uk/independentpre…
And can we trust their integrity?
An @indypremium explainer 👇
independent.co.uk/independentpre…
...in a nutshell... 
...Are they corrupted?
There have been many reports of bad loans arising from the schemes, based on estimates from BEIS, OBR & the British Business Bank that between 15-80% will not be repaid...
nao.org.uk/wp-content/upl…
There have been many reports of bad loans arising from the schemes, based on estimates from BEIS, OBR & the British Business Bank that between 15-80% will not be repaid...
nao.org.uk/wp-content/upl…
...but these estimates are:
a) very wide
b) very uncertain
c) don't distinguish between innocent losses and fraud...
a) very wide
b) very uncertain
c) don't distinguish between innocent losses and fraud...
...so we shouldn't jump to the conclusion that wither they are riddled with fraud or that the money will mostly be lost.
Experts says we'll get a clearer idea of the share of bad loans when repayment are due to start in May...
Experts says we'll get a clearer idea of the share of bad loans when repayment are due to start in May...
....We also shouldn't rush to the conclusion that the loan schemes were a policy error, given hundreds of thousands of firms really did risk running out of cash last year.
"It was the right priority at the time," argues @JamesSmithRF of @resfoundation...
"It was the right priority at the time," argues @JamesSmithRF of @resfoundation...
...Perhaps one of the dangers of the Greensill affair is that it will distract from that crucial economic context and lead to faulty conclusions about the broader merits of these schemes.
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