Iod Welcomes Government Package Guarantees
Wednesday, 14 January 2009
The Institute of Directors (IoD) welcomed today's government figures on a financial support package for small and medium-sized businesses but reminded government that policing these schemes effectiveness was not going to be a small task.
The £10 billion proposals aimed at loosening the hold of the credit crunch on Small and Medium-sized businesses include a tax-payer funded guarantee of 75% on certain commercial loans, a government stake of 50% in many working capital deals, as well as plans to exchange business debt for government funded equity stakes.
Commenting on today's announcement, IoD Director General, Miles Templeman said: "Decreasing access to finance is a great concern for businesses and today's announcements are admirable. We're also pleased to see that the Government isn't attempting to do the job of the banks themselves.
"It remains to be seen whether today's announcements prompt banks to loan new money as opposed to repackaging existing finance, but if the full £10 billion is rolled out promptly then these measures have the potential to ease existing credit pressures."
Notes to editor
The IoD (Institute of Directors) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with upwards of 52,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum - from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
The IoD offers a wide range of business services which include business centre facilities (including ten UK regional centres three in London, Reading, Bristol, Birmingham, Manchester, Nottingham, Edinburgh and Belfast) and one each in Paris and Brussels), conferences, networking events, issues-led guides and literature, as well as free access to business information and advisory services and a comprehensive Information Centre. The IoD places great emphasis on director development and has established a certified qualification for directors - Chartered Director - as well as running specific board-level and director-level training and individual career mentoring programmes.
In addition, the IoD provides an effective voice to represent the interests of its members to government and key opinion-formers at the highest levels. These include ministers, constituency MPs, Select Committee members and senior civil servants. IoD policies and views are actively promoted to the national, regional and trade media.
For further information, visit our website: www.iod.com