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Deal on lending to company debt advice customers 'resisted by banks'

Date Added: 24/01/2011  

Talks have stalled between the government and banks regarding lending to potential company debt advice clients, it has been claimed.

A treasury official told the Daily Telegraph that an agreement could be reached within the next fortnight, but that the financial institutions are resisting proposals to free up £200 billion of finance for enterprises that may currently be considering business debt advice.

The publication explained that the high street banks want a lower target figure.

"We want to get the best possible deal and make sure it is absolutely watertight. We still think that deal can happen soon," the source was quoted as saying.

Meanwhile, new shadow chancellor Ed Balls called on the banks to play their part in the economic recovery in the UK and suggested the government had not made sufficient progress with regards to the issue of banker bonuses.

According to Office of Fair Trading chief executive John Fingleton, both the Royal Bank of Scotland and Lloyds TSB should be broken up to boost competition, reported the Herald Scotland.

Posted by Julie Cutts  

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