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UK to start a public bank to finance infrastructure

Issued by AFP

27/02/2021 – 2:27 pm

British Finance Minister Rishi Sunak will announce on Wednesday that he will create a public bank that will finance infrastructure projects to support the economy, badly affected by the epidemic, with billions of pounds, his services pointed out on Saturday.

The bank, which is set to open in the spring, will initially have a capital of 12 12 billion (.514.55 billion), of which 10 10 billion ($ 12.1 billion) will be added to conditional guaranteed loans.

It will allow more than $ 48.48 billion to be invested in infrastructure such as transport or renewable energy, which will “boost the economy” while at the same time helping the UK achieve the goal of carbon neutrality, the finance ministry said in a statement.

The budget presented on Wednesday is the first time the UK has effectively exited the European single market and customs union.

By 2020 the country’s GDP had shrunk to 9.9%, a record due to the impact of the health crisis, which had crippled entire operations for months.

The new lock, which is in effect from the beginning of January, will be phased out from March to the end of June.

The country is the most affected country in the world by the Govt-19 epidemic, with more than 122,000 people.