"Banks to charge 35% on emergency loans"

[dutchman]

Crippling rates loom for firms as experts warn new crisis in spring will be worse than 2008



Banks will charge businesses up to 35 per cent interest on Rishi Sunak's emergency Covid loans within weeks, The Mail on Sunday can reveal.

Data seen by this newspaper shows lenders have used the Chancellor's flagship £19billion loan fund to saddle businesses with 'usurious' rates, which come into effect this spring.

Banks have issued £35 million of loans at rates of more than 14.99 per cent – even 34.9 per cent in one case – to firms shuttered by the pandemic, Treasury documents show.

Businesses will face crippling repayments from March as the loans hit their one-year anniversary dates and the 12-month interest-free period comes to an end.

Experts last night predicted that the economy will be devastated this spring as taxpayer support is withdrawn – and warned the pain would be worse than the crash in 2008.

They said the only hope of avoiding major collapses was Sunak propping up companies for longer.

As well as coronavirus loan repayments starting from March for hundreds of thousands of businesses, the furlough scheme paying 80 per cent of wages will be withdrawn at the end of April.

Richard Fleming – European head of restructuring at Alvarez & Marsal, which broke up and sold off the ruins of Lehman Brothers after the 2008 financial crisis – warned that a number of giant companies would go bust.

'We'll see some collapses of big names, most certainly, you'll see it in restaurants, retail, travel and tourism,' Fleming told The Mail on Sunday.

'The big change from the financial crisis is that we are dealing with companies that were good businesses, but Covid has really smacked them. The damage is probably bigger [than the financial crisis]. It's just when it really flows through is still coming – it's terrifying and there will be a reckoning from May and June.

'The second half of 2021 is when the health crisis will turn into a financial crisis as the vaccine kicks in and Government support ebbs away.' Fleming said private equity firms with 'trillions to invest' would swoop on weak, indebted firms.

[rebbonk]

“Never let a good crisis go to waste” - Churchill.

It would appear that the sh*t is about to well and truly hit the fan.

[Melisandre]

https://vm.tiktok.com/ZSTMu63o/

Before its taken down again.

https://www.bitchute.com/video/Qe8lciriDSfZ/

Veron Coleman is saying the same

https://www.youtube.com/watch?v=sOlFEbfTJa0