(1888PressRelease)
January 06, 2009 - “Guardian Worldwide” has reviewed reports indicating that original measures for this support package from the British Government had already received approval by the EC in October, when it had first become obvious that measures were necessary for the government to intervene.
The amendments to the support package specifically relate to what fees are to be paid to the government by banks and the number of currencies in which the government can issue guarantees, thereby clearing the path for more loans and cash injections to troubled financial institutions. Currently the British Government can only guarantee debt in Sterling, Euros and US Dollars, but now, as a result of these amendments, will be able to guarantee debt in Australian and Canadian dollars, Swiss Francs and Japanese Yen.
“Guardian Worldwide”, and their team of financial analysts note that, as from the start of next year, the fee payable on guaranteed liabilities to the government will be 0.5% based on an annual rate, plus the standard five-year credit default swap rate of the particular financial institution.
The EC also approved rescue measures for Germany, Italy and Spain, in line with its policy to standardize the type of rescue packages offered to its members’ financial institutions, making them compatible with a common market, according to a senior analyst at “Guardian Worldwide”.
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