Carillion bankers set up £225m fund to help subcontractors

Carillion bankers set up £225m fund to help subcontractors

Carillion bankers set up £225m fund to help subcontractors

"It's time they take responsibility for this situation and provide the long-term help necessary to the minimise damage caused to small businesses by Carillion's collapse", she said.

The British government needs to allow more time for firms to take on workers whose jobs are threatened by the collapse of outsourcer Carillion, the head of one of Britain's biggest trade unions said on Wednesday.

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.

Business minister Greg Clark will chair its first meeting later today.

Afterwards, he said United Kingdom lenders were ready to give "tailored support" and flexibility when it came to repayments.

The fund is created to support the working capital needs of small businesses within Carillion's supply chain that may now be experiencing financial difficulty.

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The trio will waive fees and suspend loan repayment for firms struggling with cash flow after losing money in the wake of Carillion's demise.

"By supporting our small business customers during this hard time, we hope we can help as many businesses as possible to get back on an even keel as quickly as possible".

However, Nationwide said it would "now look to deal directly with third-party suppliers that currently support the Carillion contract".

It held about 450 governmental contracts, spanning the education, justice, defence and transport ministries.

Carillion collapsed on Monday when its banks pulled the plug, forcing the government to step in to guarantee public services provided by the company ranging from school meals to road works.

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