British

script deal with the crisis, which became the model for the fall of many countries, largely nebezuprechen. To restore market instruments, secured assets, the British Government has developed a program of guarantees on them. This program was announced in January, in April, she began to act, but during this time none of the major British banks securitized debt is not placed under such guarantees. According to bankers, it's too expensive. The government promised to revise the terms of the program, but so far nothing has changed. The validity of this program will expire in October.

In general, the measures have proved effective in stabilizing the system, - said Professor of Finance London Business School Julian Frank - but perhaps they are wrong with the price - the government does not want to sell these safeguards is too cheap. To include the successful recapitalization of major banks and the guarantees for the debts of banks. In October 2008, the British Ministry of Finance has invested 37 billion pounds in Royal Bank of Scotland, Lloyds and HBOS, and after a few days, recapitalization of banks' top Ministry of Finance of the United States. To guarantee for the debts of the banks the British Government has allocated 250 billion pounds.

Even worse were the results, for example, guarantees of bank loans to small and medium enterprises. Companies complain that these guarantees, in fact, no guarantees, because they have to provide collateral. As if these personal guarantees may not be available - theymay already be available to banks or other lenders, and how is it then that the state supports these companies? - Said Miller Ground Breaking findirektor Chris Parkin.

Government with this point of view does not agree. By providing loan guarantees, the taxpayer takes the risk, and rightly, that this risk should be divided between the lender and borrower, - said the representative of the department of business, enterprise and regulatory reform.

The program, which provides insurance in the amount of 5 billion pounds of British manufacturers and their suppliers in case they do not pay customers to June 9, had only 13 participants. As a result, the Government has extended its contract signed last fall. But wanting still more not becoming. Smaller companies, the program disadvantageous, because the minimum coverage on it is 20 000 pounds, said a representative of the Federation of small businesses.

The Government is also revising the terms of the guarantees to banks on tools, the secured assets. This market obmelel shortly after the beginning of the crisis. According to Dealogic, with the beginning of the year, British banks have placed the tools for providing $ 747 million compared with $ 9 billion a year earlier. The government hopes that by selling loans, banks will be able to increase the issuance of new loans. RBS and Lloyds refused to talk about the reasons because of which they are not guaranteed. WSJ sources say that, on the one hand, to guarantee the required too much collateral, but on the other - a commission that will have to pay the government, are too high.

Also, banks are not actively participating in the program, which provides insurance to the Government of bad assets. In this way the Government wants to reduce future losses of banks are not buying their assets. Under this program, RBS and Lloyds insured problem loans at 500 billion pounds. But sources close to the banks argue that it is expensive insurance. For example, Lloyds must take on their balance first loss at 25 billion pounds, before the insurance starts to act, so the banks are trying to negotiate with the Government on the best terms for yourself.