UK banks and the Government are working closely
to make sure the impact of the Carillion liquidation on SMEs in the supply
chain is understood and managed in a way that best supports those in need of
assistance.
The assurance has from UK Finance and Stephen
Pegge, UK Finance Managing Director, Commercial Finance, has said that
lenders are contacting customers and, where appropriate, are putting in place
emergency measures.
These will include "overdraft
extensions, payment holidays and fee waivers to ensure those facing short term
issues can be helped to stay on track,” he explained.
Banks must show
leniency to the thousands of SMEs in Carillion’s supply chain, according to the
Federation of Master Builders (FMB).
Brian
Berry, Chief Executive of the FMB, said: “It’s absolutely critical that the
banks give the innocent victims in Carillion’s supply chain as much leeway as
possible in the short to medium term.
"We therefore
welcome UK
Finance’s announcement late this afternoon that lenders are putting in
place emergency measures, including overdraft extensions, payment holidays and
fee waivers, to ensure those facing issues relating to Carillion’s liquidation
can stay on track.
"Leniency from
the major banks will make all the difference to the thousands of firms in
Carillion’s supply chain as to whether they survive its collapse, or follow
suit.
"The construction
industry is the cornerstone of the UK economy so it’s in all of our interests
to do what we can to support these small companies and limit the domino effect
that Carillion’s demise could have.”
