(Bloomberg) — British businesses have headed off the threat of a defaults “Armageddon” as the possible end of painfully high interest rates and the energy crisis comes into view, according to the head of the government’s development bank. Most Read from Bloomberg Louis Taylor, chief executive officer of the British Business Bank, said the UK is escaping the significant rise in default rates that many feared after last year’s market chaos caused by former Prime Minister Liz Truss’s budget. The BBB – which administered the Covid-19 loan program — had warned last September that an economic downturn would likely cause a spike in defaults, with many firms loading up on debt during the pandemic. However, forecasters are expecting a shorter, shallower recession as wholesale energy prices tumble to pre-war levels and calm returns to UK markets. It boosts the prospect of the UK avoiding a wave of defaults that would hurt both businesses and lenders. “I wouldn’t say the picture is benign at the moment, but I don’t think it’s going to get materially worse necessarily,” said Taylor in an interview. “The prospects are improving because unlike three months ago people can see the peak in interest rates, the […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
